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m 



DOCUMENTS 06PT. 

SAN FRANCISCO 
PUBLIC LIBRARY 

INFERENCE 
BOOK 

Not to be taken from the Library 



rjUL l 8 1997 DOCUMENTS DEPARTMENT 



SAN FRANCISCO PUBLIC LIBRARY 

3 1223 03476 3772 



Digitized by the Internet Archive 
in 2013 



http://archive.org/details/4minutes1992sanf 






MINUTES 

^ PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 
2 :00 P.M. 
anuary 14, 1992 



<& 



COMMISSIONERS 

Sherri Chiesa, President 

Gordon Chin, Vice President 

Nancy G. Walker 

James D. Jefferson 

Victor G. Makras 

DEPARTMENTS BUREAUS 

Hetch Hetchy Project Energy Conservation 

Municipal Railway Engineering and 

DOCUMENTS DEPT. Construction Management 
Water Department 



JAW 2 7 1992 



Financial Management 



SAN FRANCISCO Information Systems 
PUBLIC U3RARV 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-001 



Call to Order: 2 :25 P.M. 

Present: President Sherri Chiesa, Vice President Gordon Chin, 
Commissioner Nancy G. Walker, Commissioner James D. 
Jefferson, Commissioner Victor G. Makras 

On motion of Commissioner Walker, seconded by Commissioner Chin, the 
Minutes of the regular meeting of December 10, 1991 were approved. 

A tape of the meeting is on file in the Office of the Secretary of 
the Public Utilities Commission. 



******************* 



RESOLUTION 
NO. 

On motion of Chin, seconded by Jefferson, the 
following resolution was adopted in Executive 
Session : 

92-0001 MR Approving settlement of Kisha Shields, et al v. City 
and County of San Francisco, Superior Court No. 
933-427. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Chin, seconded by Jefferson, the 
following resolution was adopted: 

92-0002 FM Authorizing the Assistant General Manager of Finance 
to apply for, accept, and expend $12,500,000 of 
Federal Transit Act (FTA) Section 3 capital 
assistance to implement the Muni Metro Turnback 
project; $14,700,000 to implement the Metro East 
Light Rail Facility project; authorizing the PUC to 
seek a grant scope modification to fully expend the 
surplus Section 3 capital assistance to acquire and 
modify accessible trolley coaches for the 31-BALBOA 
line; authorizing the PUC to seek a grant scope 
modification to expend the surplus Section 9 capital 
assistance to rehabilitate the 14-MISSION line in 
lieu of extending the 14-MISSION line to the Daly 
City BART Station; and requesting the Directors of 
the San Francisco Municipal Railway Improvement 
Corporation and the San Francisco County 
Transportation Authority to allocate local match 
financing or advance capital funding, as needed, for 
these federal grants. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0003 MR Requesting the Controller to draw warrants in 
payment of claims against the San Francisco 
Municipal Railway, totalling $51,000. 

VOTE: Ayes - Chiesa, Chin, WpIVpt *ef?er< "-■ 



92-002 



RESOLUTION 
NO. 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0004 FM Approving collection of charges for damages for the 
month of November 1991, against the San Francisco 
Municipal Railway from miscellaneous debtors in the 
amount of $23,172.60 and write-off compromise 
reductions for comparative negligence in the amount 
of $141.01; and Bureau of Light, Heat & Power from 
miscellaneous debtors in the amount of $1,903.56. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0005 WD Accepting the work performed under San Francisco 

Water Department Contract No. WD-2070, Construction 
of Fences on Water Department Properties, East and 
West Bay Locations, as satisfactorily completed; 
approving Debit Contract Modification No. 3 in the 
amount of $1,681.00; and authorizing final payment 
in the amount of $8,912.45 to Interlane General 
Engineering, Inc. and P & J Utility Company, AJV., 
Contractor . 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0006 WD Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for San Francisco Water Department Contract No. 
WD-2074, 8-Inch Ductile Iron Main Installation in 
Post Street between Gough and Scott Streets. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0007 WD Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for San Francisco Water Department Contract No. 
WD-2085, 8-Inch Ductile Iron Main Installation in 
Geary Street between Jones Street and Kearny Streets. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0008 WD Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for San Francisco Water Department Contract No. 
WD-2099, 8-Inch Ductile Iron Main Installation in 
Spruce Street, Euclid Avenue and Other Streets in 
the Laurel Heights Area. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 



92-003 



RESOLUTION 
NO. 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0009 WD Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for San Francisco Water Department Contract No. 
WD-2102, 8-Inch Ductile Iron Main Installation in 
Eddy Street between Divisadero and Gough Streets. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Chin, the following 
resolution was adopted: 

92-0010 MR Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for San Francisco Municipal Railway Contract No. 
MR-894, Upper Market Street Transit Thoroughfare 
Project Phase 3 - Duboce Avenue to Castro Street - 
General Construction. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0011 MR Approving the Non-Civil Service and Temporary 
appointments and removals as indicated on the 
Temporary Employment Activity Roster, for the month 
of November 1991. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0012 GM Commending H. Welton Flynn for his many 

contributions as a member of the Public Utilities 
Commission and for his dedicated service of 21 years 
to the people of the City and County of San 
Francisco; and extending personal best wishes for 
good health and happiness and in the future. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Jefferson, seconded by Chin, the 
following resolution was adopted: 

92-0013 GM Commending Arthur V. Toupin for his many 

contributions as a member of the Public Utilities 
Commission and for his dedicated service of 6 years 
to the people of the City and County of San 
Francisco; and extending personal best wishes for 
good health and happiness in the future. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 



92-004 



RESOLUTION 
NO. 

On motion of Jefferson, seconded by Chin, the 
following resolution was adopted: 

92-0014 GM Commending George Newkirk for his many years of 

dedicated work and wishing him improved health, a 
speedy recovery and an early return to his regular 
duties with the Public Utilities Commission and the 
Municipal Railway. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Chin, seconded by Jefferson, the 
following resolution was adopted: 

92-0015 GM Authorizing the General Manager of Public Utilities 
to negotiate and execute a professional services 
agreement with Grigsby Brandford & Co., Inc. /Artemis 
Capital Group, Inc., AJV, senior managing 
underwriter; Goldman, Sachs & Co. and PaineWebber 
Incorporated, co-senior managers; and E.J. De La 
Rosa & Co., Inc. and Smith, Mitchell & Associates, 
Inc., co-managers for the 1992 Refunding Series of 
San Francisco Water Revenue Bonds. 

VOTE: Ayes - Chiesa, Chin, Jefferson 
Noes - Walker, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0016 GM Extending the review period for sixty (60) days for 
the General Manager of Public Utilities to resolve 
issues with Transportation Displays, Inc. (TDI) to 
allow ample time for TDI to submit other viable 
names of firms eligible to carry out this work. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Jefferson, the 
following resolution was adopted: 

92-0017 GM Deciding to uphold the General Manager of Public 
Utilities decision to support the Municipal 
Railway's proposal to perform future brake work on 
the articulated coaches in-house, using four 
maintenance employees recently hired for the task. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0018 WD Approving a transfer of funds of $463,000 from the 
Main Replacement Project to the Feeder Main Project 
for connection to the State's South Bay Agueduct 
turnout near Sunol; and requesting the Board of 
Supervisors' approval for expenditure of the 
additional funds under the declaration of emergency. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 



92-005 



RESOLUTION 
NO. 

On motion of Chin, seconded by Makras, the following 
resolution was adopted: 

92-0019 WD Authorizing the General Manager of Public Utilities 
to negotiate and execute an agreement with the Kern 
County Water Agency for the storage and return of 
water purchased by the San Francisco Water 
Department . 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Jefferson, the 
following resolution was adopted: 

92-0020 WD Authorizing the General Manager of the Water 

Department to enter into a contract with the San 
Francisco League of Urban Gardeners (S.L.U.G.) for 
the period of 12 months for an amount not-to-exceed 
$49,500 for the purpose of improving Water 
Department property located at 7th and Lawton. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Makras, seconded by Walker, the 
following resolution was adopted: 

92-0021 WD Approving the sale of the access easement to William 
S. Porter, et ux, over San Francisco Water 
Department's Bay Division Pipeline No. 3 & 4 Right 
of Way lands and authorizing the Director of 
Property to prepare the necessary legislation for 
the enactment by the Board of Supervisors to 
consummate the execution of the sale. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Makras, seconded by Walker, the 
following resolution was adopted: 

92-0022 WD Authorizing the General Manager of the Water 

Department to negotiate and execute a professional 
services agreement with Geo/Resource Consultants, 
Inc. for an amount not-to-exceed $75,000 for 
preparation of the Lake Merced Water Resource 
Planning Study. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0023 HH Requesting the Mayor to recommend to the Board of 
Supervisors a supplemental appropriation in the 
amount of $849,889 from the deobligation of closeout 
balances in Hetch Hetchy's Capital Improvement 
Projects and that Hetch Hetchy's current Operating 
Budget be amended to fund the needed services during 
the remainder of Fiscal Year 1991/92. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 



92-006 



RESOLUTION 
NO. 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0024 HH Authorizing the Third Amendment to the Agreement 

with Vinson & Elkins, increasing the contract amount 
by $425,000 for a total not-to-exceed $1,385,000; 
and extending the term of this Agreement to June 30, 
1993 to provide legal services for the upcoming 
Federal Energy Regulatory Commission (FERC) hearings. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0025 HH Authorizing the Second Amendment with Ellis, King, & 
Prioleau, P.C., increasing the contract amount by 
$202,000, for a total not-to-exceed $334,000; and 
extending the term of this Amendment to June 30, 
1993 to provide legal services for the upcoming 
Federal Energy Regulatory Commission (FERC) hearings. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0026 HH Authorizing the General Manager of Hetch Hetchy 
Water & Power to negotiate and execute the First 
Amendment to the Agreement with Manna Consultants, 
Inc., increasing their funding by $20,000 for this 
fiscal year to provide hydrologic modeling 
consultant services. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0027 HH Authorizing the General Manager of Hetch Hetchy 

Water & Power to negotiate and execute the Second 
Amendment to the Agreement with Murray, Burns and 
Kienlen, Inc., increasing their funding by $16,500, 
for a total contract amount not-to-exceed $136,500 
for professional hydrological engineering services. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0028 HH Authorizing the General Manager of Hetch Hetchy 
Water & Power to negotiate and execute the Third 
Amendment to the Agreement with Jackson Research 
Projects, increasing their funding by $67,240, for a 
total contract amount not-to-exceed $394,240 for the 
purpose of providing professional historical 
consulting and archiving services related to the 
Hetch Hetchy Project. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 



92-007 



RESOLUTION 
NO. 

On motion of Walker, seconded by Makras, the 
following resolution was adopted: 

92-0029 HH Authorizing the General Manager of Hetch Hetchy 
Water & Power to negotiate and execute the Third 
Amendment to the Agreement with Bookman-Edmonston 
Engineering, increasing their funding by $100,000 
for this fiscal year to provide hydrologic modeling 
consultant services. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 



On motion of Jefferson, seconded by Walker, the 
following resolution was adopted: 

92-0030 HH Authorizing the General Manager of Public Utilities 
to execute the Western Systems Power Pool Agreement; 
and approving the expenditure of $25,000 for the 
cost of entering into the agreement from the Hetch 
Hetchy Operating Budget. 



VOTE 



Ayes - Chiesa, Chin, Walker, Jefferson, Makras 



On motion of Walker, seconded by Jefferson, the 
following resolution was adopted: 

92-0031 UEB Approving the transfer of $290,000 from the Water 

Department Water Main Extension Project to the Water 
Department CDD Underground Tanks Replacement Project. 

VOTE: Ayes - Chiesa, Chin, Walker, Jefferson, Makras 



Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission . 

*********************** 



Announcement 

President Chiesa announced that the Commission met in Executive 
Session on January 14, 1992 and approved the settlement of Kisha 
Shields, et al v. City and County of San Francisco, Superior Court 
No. 933-427. 

*********************** 



Report of the General Manager 
Filtration of Hetch Hetchy Water 



Mr. Thomas J. Elzey, General Manager, Public Utilities Commission, 
referred to staff's earlier package submitted to the Commission 
regarding studies that had been completed on the issue of filtration 
of Hetch Hetchy water. He noted that the study was developed as a 
siting study to determine the most feasible alternative for the 
development of a filtration plant in order for the City and County 
of San Francisco to come into compliance with surface water 
treatment rules recently enacted by the State of California. Mr. 
Elzey said that after further review of that study, staff had 
determined that it would make more sense in the short run for the 
department to fund the preliminary expenditures for an environmental 



92-008 



impact report and a conceptual engineering report for a filtration 
facility to be funded from the 1991/92 and 1992/93 capital budgets 
rather than attempting to go to the voters to get funding for the 
development of a filtration plant. With those phases of the work 
completed first, the environmental impact report and conceptual 
engineering report, it is anticipated that funding for the 
development of a filtration plant would not go before the voters 
until November of 1994. Then the department would be in a much 
better position to clarify any cost or environmental issues the 
voters may have. 

Commissioner Walker requested that staff report back to this 
Commission on the draft scope of work related to the environmental 
impact report before the request for proposals is completed. 

Muni Metro Extension/Turnback 

Mr. Flint Nelson, Manager, Transportation Project Management 
Division, Utilities Engineering Bureau, gave a brief overview on the 
Muni Metro Turnaround and Muni Metro Extension projects. He noted 
that the main purpose of these two projects would be to extend the 
existing Muni Metro system from the foot of Market Street to 6th and 
King Streets. 

Mr. Nelson explained that the Muni Metro Turnaround project would 
provide a more efficient system for reversing light rail vehicles 
(LRV's) within the existing subway system and provide a connection 
from the existing terminal at the Embarcadero Station to Muni Metro 
Extension. He said that the project cost was estimated at 
approximately $200 million and that the design completion date for 
this project would begin around May 1992 with the construction phase 
of the project beginning October 1992 and ending October 1995. 

Mr. Nelson also explained that the Muni Metro Extension project 
would provide LRV service to the South Beach and Mission Bay areas 
and provide LRV connections to the Caltrain depot from Embarcadero 
Station for both BART and Muni service. The project cost was 
estimated to be slightly in excess of $50 million. Mr. Nelson 
stated that the project schedule for the Muni Metro Extension was 
divided into two phases. The first phase of the project would be 
completed late Summer of 1993 with the second phase of the project 
completed in the Fall of 1994. 

The Presidio/Water Department 

Ms. Cheryl Davis, Manager, Customer Service Division, Water 
Department, reported on discussions between staff and federal 
agencies regarding how The Presidio's water demand would be met when 
the property is transferred from the Army to the Department of 
Interior . 

Historically, the Army has owned and operated its own water 
treatment system serving The Presidio with 1.5 million gallons of 
water per day. The vast majority of the water that is used at The 
Presidio is obtained from the Lobos Creek supply and from wells. 
The Army treats that water and has its own pumping stations, 
reservoirs, and distribution system which it maintains. The Army 
overall has been responsible for meeting the bulk of its water 
demand at The Presidio. Ms. Davis stated that the Army's water 
treatment plant needs to be upgraded, which could cost the Federal 
Government millions of dollars. She said that in late 1990 the U.S. 
Army Corps of Engineers published a report recommending that the 
Army look seriously at closing their treatment plant and abandoning 
the Lobos Creek water system as their main water supply for The 
Presidio. They recommended in that report that the City of San 
Francisco take on The Presidio as their customer and meet their 
complete water demand. 



92-009 



Ms. Davis stated that the Water Department is not in a position to 
take on a customer of this size, especially in the middle of a 
drought. The Water Department has made it very clear to the Army 
that it was not acceptable for them to walk away from a proven 
developed accessible water source. Through a series of meetings 
with them, we believe they have come to realize that the Water 
Department is very serious about their position in not taking on 
such a large customer. 

Ms. Davis remarked that the Water Department was encouraging the 
Army to focus on water conservation since there was no internal 
metering at The Presidio. She stated they were encouraging them to 
think in terms of using reclaimed water because a significant 
percentage of their demand for The Presidio was for non-potable 
water to irrigate their cemetery, golf course and grounds in 
general. Also, the Water Department has encouraged the possibility 
of building an interconnection between The Presidio and the Water 
Department's lines resulting in an integrated water supply system 
that would benefit both The Presidio and San Francisco. 

Mr. Elzey stated that he would keep the Commission informed as to 
the status of this project. 

Forged Fast Passes 

Ms. Michelle N. Witt, Acting Finance Director, Bureau of Finance, 
remarked that staff had prepared a number of recommendations to the 
Commission in addressing the problem of counterfeit Fast Passes some 
time ago, which included short and long term solutions. Ms. Witt 
stated that one alternative to solving this problem would be to 
reguire passengers to show both sides of their Fast Pass when 
boarding the bus versus the previously proposed plan to fix stickers 
on each month's Fast Pass, which staff has determined was not 
feasible. One of the drawbacks of showing both sides of the pass 
would be that it could delay boarding time. The cost to implement 
this short term solution could be approximately $15,000 and would 
begin in March 1992. 

Another long term solution that was discussed earlier was the 
implementation of holograms. Ms. Witt said that staff had 
researched the use of an iridescent strip versus the use of 
holograms and that the iridescent strip was very similar to that of 
the hologram except that it was less expensive to implement. Ms. 
Witt noted that the iridescent strip would cost an additional 
$80,000 per year, whereas the cost of the hologram would cost about 
$135,000 per year. The only drawback in using the iridescent strip 
was that one may not be able to use the strip with the metallic 
strip that is needed to enter BART or Muni Metro. Ms. Witt stated 
that staff would like to issue a reguest for proposals for the Fast 
Passes to see what options might be available pertaining to the use 
of holograms and the iridescent strip. 

Ms. Witt said the use of swipe readers was another long term 
solution that staff had recommended. She mentioned that presently 
no transit agency with Muni's level of ridership was using swipe 
readers. The cost of the swipe readers would be around $1 million 
plus annual maintenance costs. Ms. Witt noted there recently was an 
article stating that there were problems with the use of swipe 
readers taking the cards on the first swipe. Therefore, staff was 
not recommending the implementation of swipe readers at this time. 



*********************** 



Announcement 

President Chiesa welcomed on behalf of the Commission, Commissioner 
James D. Jefferson and Commissioner Victor G. Makras as new members 
of the Public Utilities Commission. 



*********************** 



92-010 



Public Hearing 

Resolution No. 92-0002 -- Authorizing the Assistant General Manager 
of Finance to apply for, accept, and expend $12,500,000 of Federal 
Transit Act (FTA) Section 3 capital assistance to implement the Muni 
Metro Turnback project; $14,700,000 to implement the Metro East 
Light Rail Facility project; authorizing the PUC to seek a grant 
scope modification to fully expend the surplus Section 3 capital 
assistance to acquire and modify accessible trolley coaches for the 
31-BALBOA line; authorizing the PUC to seek a grant scope 
modification to expend the surplus Section 9 capital assistance to 
rehabilitate the 14-MISSION line in lieu of extending the 14-MISSION 
line to the Daly City BART Station; and requesting that the 
Directors of the San Francisco Municipal Railway Improvement 
Corporation and the San Francisco County Transportation Authority to 
allocate local match financing or advance capital funding, as 
needed, for these federal grants. 

Ms. Witt noted that the Urban Mass Transportation Administration 
(UMTA) was now referred to as the Federal Transit Administration 
(FTA) . She stated that this public hearing was to apply for two new 
grants to provide funding for the Muni Metro Turnback project and 
the Metro East Light Rail Facility project. Also, this resolution 
would authorize the PUC to seek grant scope modifications for the 
31-BALBOA line and the 14-MISSION line. 

President Chiesa invited public comments. 

Mr. Edward G. Evans stated that it was important to continue to have 
wheelchair accessibility on the 31-BALBOA line and that if Muni was 
unable to bring in electrified trolley coaches on that line that it 
was necessary that they keep the diesel buses running in order to 
remain under federal guidelines. 

Mr. David Pilpel spoke in support of extending the 14-MISSION 
trolley route to the Daly City BART station. He questioned how Muni 
intends to store the new LRV ' s before the Metro East Facility 
project is completed. Mr. Pilpel stated that efforts should be made 
to house those vehicles. 



The public hearing was closed. 



On motion of Commissioner Chin, seconded by Commissioner Walker 
Resolution No. 92-0002 was approved. 



******************* 



92-011 



Resolution No. 92-0012 -- Commending H. Welton Flynn for his many 
contributions as a member of the Public Utilities Commission and for 
his dedicated service of 21 years to the people of the City and 
County of San Francisco. 

Resolution No. 92-0013 -- Commending Arthur V. Toupin for his many 
contributions as a member of the Public Utilities Commission and for 
his dedicated service of 6 years to the people of the City and 
County of San Francisco. 

President Chiesa expressed on behalf of the Public Utilities 
Commission that it was a pleasure working both with Commissioner 
Flynn and Commissioner Toupin and that they will both be sorely 
missed on this Commission. She stated that Commissioner Flynn was 
an absolute institution and said that she was personnally indebted 
to him for his guidance throughout her term. 



******************* 



Resolution No. 92-0015 -- Authorizing the General Manager of Public 
Utilities to negotiate and execute a professional services agreement 
with Grigsby Brandford & Co., Inc. /Artemis Capital Group, Inc., AJV, 
senior managing underwriter; Goldman, Sachs & Co. and PaineWebber 
Incorporated, co-senior managers; and E.J. De La Rosa & Co., Inc. 
and Smith, Mitchell & Associates, Inc., co-managers for the 1992 
Refunding Series of San Francisco Water Revenue Bonds. 

Mr. Elzey remarked that at the November 26, 1991 meeting, the 
Commission approved a resolution authorizing the General Manager to 
proceed with the issuance of approximately $135 million of San 
Francisco Water Revenue Bonds, 1992 Refunding Series A. He stated 
that per the request of the Commission, a Request for Proposal was 
issued to select the underwriting team for refunding of the bonds. 

Commissioner Walker asked what the cost of the bond refunding would 
be and what were the comparative costs among the competing firms. 
She also asked why the ranking from December 23rd showed one firm 
No. 1 and the final interview list of January 3rd ranked another 
firm No . 1 . 

Mr. Elzey replied that in Novmeber 1991, staff presented a range of 
potential present value savings which could be expected from 
refunding of the bonds. Regarding costs, he said that the 
management fee would be negotiated with the underwriting team. 

Ms. Witt stated that the management fee for the firm that was 
selected as senior underwriter was based upon a per bond basis. So 
the amount would depend upon how many bonds are issued. Most of the 
firms bid on a fixed fee basis. The request for proposals (RFP) 
stated that fees are negotiable. The selection criteria was not 
based upon fee. 

Ms. Witt described the selection process. She said that staff 
received 19 proposals in response to the RFP. Twelve of those 
proposals were for senior underwriting services. The selection 
panel reviewed the written proposals on December 23rd and made two 
rankings - one for senior managers and one for co-managers. This 
was the only evaluation of co-managers. On January 3rd, all 12 
senior manager firms were interviewed and ranked. The changes in 
ranking reflect the difference between the written proposals and the 
overall evaluation after the oral interviews. 

Commissioner Makras asked why cost was not considered in the 
selection criteria. Ms. Witt replied that underwriter selection is 
based upon the firm's ability to do the job, that is, their 
qualifications, experience and specific experience in refunding 
utility bonds in California. 



92-012 



Commissioner Makras expressed the opinion that when experience is 
close and there is a significant cost difference that cost should be 
a determining factor. Mr. Elzey agreed that fees were a relevant 
item but that the selection was based upon qualifications and the 
ability to access the market, the ability to market the bonds and to 
manage the process in a way most beneficial to the City. Fees were 
not weighed as high as these other items. 

Commissioner Jefferson said that in all professional services 
selection is by qualifications. He said that his concern was that 
the procedures are fair and consistently applied. 

On motion of Commissioner Chin, seconded by Commissioner Jefferson, 
Resolution No. 92-0015 was approved. Commissioner Walker and 
Commissioner Makras voted against the motion. 



******************* 



Resolution No. 92-0016 -- Extending the review period for sixty (60) 
days for the General Manager of Public Utilities to resolve issues 
with Transportation Displays, Inc. (TDI) to allow ample time for TDI 
to submit other viable names of firms eligible to carry out this 
work. 

Mr. Elzey stated that staff came before this Commission at the 
December 10, 1991 meeting regarding the request by TDI to make a 
substitution of their subcontractor and also to discuss the issue 
that had been raised by TDI about its relationship with Carders and 
Posters, Inc. This resolution would be to request an additional 
extension of time to resolve this issue of subcontracting. 

President Chiesa requested an update from the City Attorney on this 
issue. Ms. Robin Reitzes, Deputy City Attorney, Public Utilities, 
advised that the Commission met in Executive Session on this item. 

The Commission recessed into Executive Session at 4:00 P.M. 

The meeting was reconvened at 4:25 P.M. 

Commissioner Makras moved that the resolution be amended to reflect 
that this Commission extend the review period for sixty (60) days 
for the General Manager of Public Utilities to resolve the issues 
with Transportation Displays, Inc. (TDI) to allow ample time for TDI 
to submit other viable names of firms eligible to carry out this 
work. He noted that the last paragraph of the draft resolution 
would be deleted. Commissioner Walker seconded. 

Mr. Mike Cook, representing Automotive Machinists Union, Local 1305, 
remarked that there are employees being affected by this delay 
process and said he would like to see this issue solved as quickly 
as possible. 

Mr. John Burton, representing TDI, requested that during this sixty 
day review period that this Commission consider Bardel, Inc. as 
TDI's subcontractor. He stated that TDI is willing to take the 
risk in helping this new business get started and make sure they are 
in complete compliance with any restrictions that may be imposed by 
the PUC. 

Mr. Donald R. Allman, Executive Vice President, TDI, echoed Mr. 
Burton's comments. He stated that TDI would remain committed to 
meeting all of the contract goals in their relationship with the 
Municipal Railway. 

Mr. Washington Johnson, Operations Manager, Carders and Posters, 
Inc., stated that the directive issued at the December 10, 1991 
meeting had been ignored by TDI. He was of the opinion that what 
had happened subsequent to that directive was evidence of what TDI 
would do with respect to any decisions made by this Commission. 

92-013 



Ms. Karen Coleman, President, Carders and Posters, Inc., remarked 
that it was their understanding that the instructional motion 
adopted by the PUC on December 10, 1991 required that TDI and 
Carders and Posters, Inc. fulfill the obligations under the existing 
subcontractual agreement until the General Manager came back to this 
Commission with his recommendation. TDI has refused to comply with 
that instructional motion. Ms. Coleman again appealed to the 
Commission to establish a level playing field where both fairness 
and equitable treatment are the guiding principles. 

Mr. Bob Owen, representing the Sign and Display Union, stated that 
their union represented most of the workers at Carders and Posters, 
Inc. He said the workers no longer were employed by Carders and 
Posters, Inc. as of December 13, 1991 and since then have not been 
paid for that week. Mr. Owen requested that this problem be 
resolved as soon as possible. Meanwhile, he stated that an interim 
agreement had been signed with TDI to keep the work going and with 
this temporary changeover working conditions have already improved 
tremendously. 

Mr. Jose L. Nava spoke on behalf of himself and the employees at 
Carders and Posters, Inc. He said he has been employed for 15 years 
in this trade and was never treated so badly until he worked for 
Carders and Posters, Inc. Mr. Nava stated that as a result of poor 
working conditions, the workers left Carders and Posters, Inc. on 
December 13, 1991 and went to work for TDI. Since that date, the 
workers have not been paid their last week's salary. 

Ms. Joan Brann, President, Bardel, Inc., stated that her firm had 
been offered the contract by TDI to become their disadvantaged 
business enterprise (DBE) subcontractor. Ms. Brann presented her 
curriculum vitae highlighting her various business experiences and 
said that she has been a resident of San Francisco for the past 
forty years and has been socially and politically active in her 
community. She stated that she hoped the Commission's resolution 
would be one that would allow her the opportunity to work with the 
PUC. Ms. Brann remarked that her firm would be willing to adhere to 
all constrictions and regulations placed upon it by this Commission. 

Mr. Bernard M. Resser, Legal Counsel for TDI, stated that after 
careful consideration of TDI ' s obligations under the contract, that 
the contract does not require that TDI use a DBE firm exclusively 
for all carding and posting. He indicated that it was interpreted 
by the court that Carders and Posters, Inc. was not adhering to the 
contract . 

Mr. William Murphy, National Operations Director, TDI, spoke in 
favor of the amended motion. He stated that TDI has temporarily 
taken over the carding and posting business until a substitute 
subcontractor is selected. Mr. Murphy said that TDI would be 
willing to help a business minded person get started in the carding 
and posting business and suggested that Bardel, Inc. be selected to 
be the substitute DBE subcontractor for TDI. 

Mr. Vern Coleman, Vice President and General Manager, Carders and 
Posters, Inc., stated that their firm had been solidly grounded in 
the carding and posting business since 1985 long before TDI. Mr. 
Coleman said their firm did not have work for their employees 
because TDI did not provide them with any contracts. 

Commissioner Walker requested that over the next sixty days that 
staff provide the Commission with information on the criteria for 
DBE certification of a new business. 



On motion of Commissioner Walker, seconded by Commissioner Makras 
Resolution No. 92-0016 was approved, as amended. 



******************* 



92-014 



Hearing on the appeal filed by the California Bus Association (CBA) 
of the decision of the General Manager of Public Utilities regarding 
terminating contracting of brake repair work on M.A.N, articulated 
buses . 

Resolution No. 92-0017 -- Deciding to uphold the General Manager of 
Public Utilities decision to support the Municipal Railway's 
proposal to perform future brake work on the articulated coaches 
in-house, using four maintenance employees recently hired for the 
task . 

Mr. Elzey stated that on December 19, 1991 he met with a 
representative from the California Bus Association to review the 
decision that was made by Mr. Johnny B. Stein, General Manager, 
Municipal Railway concerning whether or not future brake work on the 
articulated coaches should be performed in-house. After hearing 
both sides, Mr. Elzey concluded that the brake work should be 
performed in-house. As a result, an appeal was filed by the CBA 
against that decision. 

Mr. Phil Adams, Deputy General Manager, Maintenance Engineering, 
Municipal Railway, explained that when the decision was made to 
purchase articulated coaches in 1984, Muni did not have the 
facilities to perform certain maintenance operations on those 
coaches. Therefore, Muni decided to contract the brake work with 
the idea of bringing the work back in-house when the Flynn facility 
was constructed. Mr. Adams stated that historically every transit 
system usually performs brake work and other critical operations 
in-house. A decision has now been made to perform this work 
in-house at the new Flynn facility. Recently, four employees were 
hired to maintain the articulated vehicles and they have shown 
tremendous progress. 

Mr. Jim Seal, representing the California Bus Association, pointed 
out that the California Bus Association filed a protest with the 
Federal Transit Administration (FTA) , on Muni's decision to 
terminate contracting brake services on the articulated buses as of 
December 31, 1991. He was of the opinion that Muni's decision was 
not based on a fair cost comparison analysis and that CBA was 
precluded from any consultative process prior to staff's 
recommendation, which is in violation of local and FTA policies. 
Mr. Seal said that the PUC should be committed to sustaining an 
environment which provides opportunities for private sector 
involvement in connection with transportation and related 
maintenance services. 

Mr. Mike Cook, representing Automotive Machinists Union, Local 1305, 
spoke in favor of the work being performed in-house and said that 
Muni will be saving a tremendous amount of money by allowing their 
employees to work on the vehicles versus contracting the work out to 
Pacific Coast Bus Service, Inc. 

Commissioner Jefferson asked what are the FTA regulations that 
relate to the involvement of the private sector in these kinds of 
decisions . 

Ms. Robin Reitzes, Deputy City Attorney, replied that Muni never 
intended that this work be contracted out on a permanent basis but 
that it was only until Muni had the facilities to perform the work 
in-house. Therefore, there are no FTA regulations that would 
reguire Muni to contract any particular type of service. Ms. 
Reitzes stated that it was a management decision as to what is 
contracted and what is not. The initial decision made in 1984 to 
contract this work was made long before the FTA regulations on 
privatization were issued in December 1986. 



92-015 



Commissioner Walker moved to approve the resolution upholding the 
General Manager's decision to perform future brake work on the 
articulated coaches in-house and simultaneously moved to table the 
alternative resolution. 

On motion of Commissioner Walker, seconded by Commissioner Jefferson, 
Resolution No. 92-0017 was approved. 



******************** 



Public Comments 

Mr. David Pilpel presented the Commission with a letter regarding 
his initial comments on the PUC/Muni budget issues for FY 1992-93. 
He urged that the existing transit service be maintained despite the 
10% cut in the General Fund. Mr. Pilpel recommended that PUC ' s 
organizational structure should be changed before increasing transit 
fares and cutting services. 



****************** 



THEREUPON THE MEETING WAS ADJOURNED: 5:34 P.M. 



Romaine A. Boldridge 
Secretary 



92-016 



F 
a 



zhi- 



MAIN PUBLIC LIBRARY 
MINUTES Government Documents 

Civic Center-lst Floor 



PUBLIC UTILITIES COMMISSION 



CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 
2 :00 P.M. 
^-January 28, 1992 

COMMISSIONERS 
Gordon Chin, President 



Ki f f 1992 

fAN f RANC8SCO 
*UBUC i ..'3RAP.Y 



DOCUMENTS DEPT. 

FEB 2 1 1992 



SAN FRANCISCO 

Nancy G. Walker, Vice President PUGL,c ' '3RARY 



Sherri Chiesa 

James D. Jefferson 

Victor G. Makras 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railv;ay 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-017 



Call to Order: 2:10 P.M. 

Present: President Sherri Chiesa, Vice President Gordon Chin, 
Commissioner Nancy G. Walker, Commissioner James D. 
Jefferson, Commissioner Victor G. Makras 

On motion of Commissioner Walker, seconded by Commissioner Makras, 
the Minutes of the regular meeting of January 14, 1992 were approved, 

A tape of the meeting is on file in the Office of the Secretary of 
the Public Utilities Commission. 



******************* 



SPECIAL ORDER OF BUSINESS 
ELECTION OF OFFICERS FOR THE YEAR 1992 



Commissioner Makras nominated Vice President Gordon Chin for the 
office of President. Commissioner Jefferson seconded. 

Commissioner Chin was unanimously elected President. 

President Chin accepted the gavel and presided for the remainder of 
the meeting . 

Commissioner Chiesa nominated Commissioner Walker for Vice 
President. Commissioner Makras seconded. 

Commissioner Walker was unanimously elected Vice President. 



************************** 



RESOLUTION 
NO. 

On motion of Jefferson, seconded by Walker, the 
following resolution was adopted: 

92-0032 WD Adopting an amendment to the Urban Water Management 
Plan, creating an Urban Water Shortage Contingency 
Plan in accordance with AB 11X. 

VOTE: Ayes - Chin, Walker, Chiesa, Jefferson 
Noes - Makras 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0033 WD Accepting the work performed under San Francisco 
Water Department Contract No. WD-2058, 8-Inch 
Ductile Iron Main Installation in Fourth Street 
between Market and Townsend Streets, as 
satisfactorily completed; approving debit Contract 
Modification No. 1 in the amount of $800.64; 
authorizing an extension of time for unavoidable 
delays of 6 working days; and authorizing final 
payment in the amount of $17,811.84 to Stacy & 
Witbeck, Inc., Contractor. 

VOTE: Ayes - Chin, Walker, Chiesa, Jefferson, Makras 



92-018 



RESOLUTION 
NO. 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0034 PT Approving the Non-Civil Service and Temporary- 
appointments and removals as indicated on the 
Temporary Employment Activity Roster, for the month 
of December, 1991. 

VOTE: Ayes - Chin, Walker, Chiesa, Jefferson, Makras 

On motion of Jefferson, seconded by Chiesa, the 
following resolution was adopted: 

92-0035 WD Approving funding for additional consulting services 
in the amount of $150,000 for emergency repairs on 
Bay Division Pipeline No. 4. 

VOTE: Ayes - Chin, Walker, Chiesa, Jefferson, Makras 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0036 UEB Approving Contract Modification No. 1 for HH-830, 
San Joaquin Pipeline No. 2, Repair Mortar Lining, 
Segment II with Healy Tibbitts Builders, Inc.; 
extending the time allowed to complete the work 30 
calendar days; and reallocating $133,400 from Bid 
Item No. 3, Allowance for Extra Work, as full 
compensation for the time extension. 

VOTE: Ayes - Chin, Walker, Chiesa, Jefferson, Makras 

On motion of Jefferson, seconded by Chiesa, the 
following resolution was adopted: 

92-0037 FM Authorizing the Assistant General Manager of Finance 
to apply for, accept, and expend $437,000 from 
1991-92 State Traffic Systems Management Capital for 
the Municipal Railway. 

VOTE: Ayes - Chin, Walker, Chiesa, Jefferson, Makras 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0038 FM Authorizing the General Manager of Public Utilities 
to modify the contract with Williams, Adley and 
Company, for auditing and consulting services on an 
as-needed basis, in an amount not to exceed $100,000. 

VOTE: Ayes - Chin, Walker, Chiesa, Jefferson, Makras 

Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission. 



*********************** 



92-019 



Announcement 

Ms. Romaine A. Boldridge, Secretary, announced that Item No. 15, Bid 
call for Municipal Railway Contract No. MR-895 for construction of 
the J-M Platform & Trackway Improvement Project had been removed 
from the calendar to allow staff more time to meet with the 
communi ty . 

************************** 



Public Hearing 

Item No. 10 -- To consider the budget proposal for Hetch Hetchy 
Water and Power for Fiscal Year 1992-93. 

Mr. Thomas J. Elzey, General Manager of Public Utilities, stated 
that the budget instructions received from the Mayor's Office 
targeted general fund departments. Since Hetch Hetchy is an 
enterprise department it is exempted from the 10% cut reguired by 
general fund departments. Nevertheless, staff has been very 
cost-conscious in proposing this budget. 

Ms. Michelle Witt, Acting Finance Director, used charts to present 
an overview of the PUC budget. She said that the three operating 
departments, the Municipal Railway, the Water Department and Hetch 
Hetchy Water and Power, have a total operating budget of $465 
million. The Municipal Railway's budget is $269 million, excluding 
its capital budget which is funded by grants. The Water Department 
budget is $117 million which includes a portion of its capital 
budget. The remainder of the capital budget is funded through 
bonds. Hetch Hetchy's budget is $79 million which includes its 
capital budget. The three operating departments fund the PUC 
Bureaus which have a combined budget of $28 million - $16.6 million 
from the Municipal Railway, $7.5 million from the Water Department, 
and $4 million from Hetch Hetchy. 

Mr. Anson B. Moran, General Manager, Hetch Hetchy Water and Power, 
explained the nature of the department's budget as an enterprise 
department. Hetch Hetchy's revenues are sufficient to meet its 
operating expenses, even in a drought year, and to provide 
contributory services to other City departments through discount 
power to general fund departments and transit overhead to the 
Municipal Railway. The value of these contributions is 
approximately $25 million a year. In the current year, the 
department will make a cash contribution to the general fund of $11 
mi 1 1 ion . 

Mr. Moran described the increases to the department's budget. There 
are no new positions in the budget. However, there are position 
transfers from other departments and reclassifications. The primary 
increase over this year's budget is in the area of professional 
services for legal services. The proposed funding level reflects a 
continuation of this year's budget plus the recently approved 
supplemental appropriation. Mr. Moran responded to guestions from 
the Commission. 

Commissioner Walker noted that a feasibility study regarding the 
municipalization of electric power was not included in the budget. 
She inguired about the source of funds if such a study were to be 
added to the budget. Mr. Moran replied that it would come from 
somewhere between Capital Improvements and Transfer to the General 
Fund. Commissioner Walker asked staff to provide more specific 
information concerning the source of funds and how much a study 
would cost. 



92-020 



Commissioner Makras questioned the simplicity of the budget since it 
appears to be the same as last year's with only minor changes, and 
the fact that there were no savings indicated. Mr. Moran pointed 
out that the budget did not take into consideration the impact of 
possible retirements under the Proposition A Early Retirement Plan. 
Approximately 10 percent of the department's workforce may take 
early retirement. This would provide an opportunity for some 
economies. Also the department will be attempting to impact the 
large cost items by taking advantage of deregulation through the 
Western States Power Pool for power purchases and through the State 
for natural gas purchases. 

Commissioner Makras expressed the opinion that the department's 
budget should project a savings from Proposition A. If other 
departments are cutting 10 percent and we are not, then we are not 
doing our share. 

President Chin asked are there ways to reduce costs and enhance 
efficiencies to raise additional revenues to provide greater benefit 
to the general fund. 

Commissioner Walker requested that the Commission receive 
information on the assumptions each department used in preparing its 
budget. She asked the department to describe how the budget would 
change if the budget transfer to the general fund were eliminated, 
or increased, and to identify the policy choices. 

Mr. Richard Delaney, representing Local 21, referred to the A998 - 
Safety Analyst position in the budget and said that the 
classification is an entry level position not a management level 
position. He said that it should be part of a centralized unit. 

Mr. David Pilpel suggested merging the budget of the Bureau of 
Light, Heat and Power into the Hetch Hetchy budget to reduce 
paperwork. He asked if it is in the City's best interest to 
contract street lighting work or have it done by the Department of 
Public Works or the Department of Electricity and 
Telecommunications. He suggested decentralizing the Utilities 
Engineering Bureau and the Bureau of Management Information 
Systems. He suggested moving the Bureau of Energy Conservation into 
Hetch Hetchy to save paperwork. He said that if there is a way to 
provide services with less people it should be done. 

The budget hearing was continued to February 3, 1992, at 10:00 a.m. 

At 4:15 p.m. the meeting was recessed. 



************************** 



At 4:30 p.m. the meeting was reconvened. 



Public Hearing 

Resolution No. 92-0032 -- Adopting an amendment to the Urban Water 
Management Plan, creating an Urban Water Shortage Contingency Plan 
in accordance with AB 11X. 



Mr. Mullane stated that the proposed Urban Water Shortage Plan was 
developed pursuant to State legislation adopted in 1991. San 
Francisco is required to file the plan with the State in order to 
participate in benefits that might accrue in a second year of a 
State Water Emergency Bank or in order to use the State water 
project for transmission of water from sources other than the State 
bank. There are nine major components of the plan. With two minor 
exceptions, San Francisco has all components in place and they have 
been in place at various times throughout the last four years of 
rationing programs. Mr. Mullane pointed out minor differences 
between the new requirements and the department's operations. The 
State now requires development of 12, 24 and 36 months of 

92-021 



worse case scenarios, the department has always used a two year 
planning process, so an additional 12 months has been added to this 
plan. The other difference is the requirement for development of 
stages of action. The department has always had a set of criteria 
which was used to determine what the level of rationing should be. 
This criteria has now been formalized in the plan. The plan does 
not change anything the department is doing. A draft version has 
been submitted to the State for initial comments. They responded 
that it not only met their needs but surpassed what they were 
expecting from agencies of our size. 

Commissioner Makras inquired as to the rationale for progressive 
penalties (up to ten times the normal rate) for water use over the 
allotment when the landlord cannot control usage in a multi-unit 
building. Also, he pointed out that penalties applied to businesses 
which are dependent upon water use, such as a laudermat, are 
counterproductive to business growth. 

Mr. Mullane replied that the department has over the years worked 
with commercial operations such as, hotels, laundermats, car washes, 
etc. to help them identify conservation measures, to adjust their 
allotments for their business and to accommodate increases in 
business. Regarding penalties, the department has always supported 
a "pass through" vehicle so that a landlord shares responsibility 
with the tenant. It would put the burden on the landlord to install 
mechanical devices and a burden on the tenant to conserve water. In 
addition, the department maintains a high bill program which makes 
adjustments for leaks. 

Mr. Russell Miller said that he was in favor of water conservation 
and a percentage reduction like the current rationing plan versus 
the per capita program shown in this plan. 

Ms. Virginia Conway stated that pass through of penalties for 
apartment dwellers is not equitable since some tenants use more than 
others . 

Mr. David Pilpel asked whether there had been an environmental 
review of this plan. Mr. Mullane replied in the negative. 

On motion of Commissioner Jefferson, seconded by Commissioner 
Walker, Resolution No. 92-0032 was adopted by a 4 to 1 vote, with 
Commissioner Makras voting no. 



************************** 



Item No. 14 -- Authorizing execution of a 2,100 acre livestock 
grazing lease to Tony and Russ Fields, dba Fields Livestock, on 
Water Department land located in Alameda and Santa Clara counties, 
for a term of approximately 9 months, commencing upon execution date 
of lease and ending October 31, 1992, at a rental of $20,000 per 
year, payable $10,000 semi-annually in advance. 

Commissioner Makras pointed out that a $150 late charge on a $10,000 
payment is below market rates and creates an incentive not to make 
the payment when due. He suggested that all leases contain an 
adequate late charge. The market rate for residential properties is 
5-6 percent and for commercial properties it is 10 percent. In 
general, he suggested that leases should contain a clause requiring 
that the tenant should pay either a flat fee or an hourly rate for 
the department to process an assignment. Also, assignments should 
continue to bind the original party. 

This item was continued indefinitely for staff to review the terms 
of the lease. 



******************* 



92-022 



Public Comments 

Mr. David Pilpel referred to the categorical exemption under CEQA 
for the J-M Platform & Trackway Improvement Project, and noted that 
no mention was made of operator restrooms which have been a 
controversial issue. 

Mr. Pilpel inquired about the department's annual report to the 
Mayor. Mr. Elzey replied that the financial data is available. 
Commissioner Walker stated that the budget is a report. 



******************* 



THEREUPON THE MEETING WAS ADJOURNED: 5:25 P.M. 



Romaine A. Boldridge 
Secretary 



92-023 



^M 



I N U T E S 



92 

LoJLs 



^-PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 
Frank M. Jordan 
Mayor 



SPECIAL MEETING 
Room 282, City Hall 
10 : 00 A.M. 
^jj^February 3, 1992 

COMMISSIONERS 

Gordon Chin, President 

Nancy G. Walker, Vice President 

Sherri Chiesa 

James D. Jefferson 

Victor G. Makras 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-024 



Call to Order: 10:12 A.M. 



Present: President Gordon Chin, Vice President Nancy G. Walker, 
Commissioner Sherri Chiesa, Commissioner James D. Jefferson, 
Commissioner Victor G. Makras 

A tape of the meeting is on file in the Office of the Secretary of 
the Public Utilities Commission 

No action was taken at this meeting. 

Public Hearing -- To consider budget proposals for the PUC Bureaus 
and operating and capital budget proposals for the San Franciso 
Water Department and Hetch Hetchy Water and Power for fiscal year 
1992-93. 



Water Department 

Mr. John P. Mullane, General Manager San Francisco Water Department, 
described the major functions of the department and the amount of 
money budgeted for each function. He described the department's 
current and proposed organizational structure and introduced the 
management staff. He pointed out that the department is an 
enterprise department, which means that the department does not draw 
from the City's general fund. It generates revenue sufficient for 
its operations. The department is a regional purveyor of water to 
approximately 2.6 million people in the Bay Area. The department 
does not provide a direct contribution to the general fund. 
Indirectly, the Water Department provides close to $5 million of 
free water to non-enterprise City departments. 

Mr. Mullane said that the proposed budget includes a reorganization 
plan which would move water treatment capabilities from the Water 
Quality Division to the Water Supply Division and would move Project 
Engineering and the Land Section from the Water Supply Division to 
Administration. He said that under the Surface Water Treatment Rule 
the department will be required to filter Hetch Hetchy water which 
comprises about 85 percent of our total water supply in a normal 
year. He noted that included in the proposed capital budget is $8 
million for environmental review and conceptual design of a water 
treatment facility. Staff would seek authority from the Commission 
to place the matter on the ballot for bonding in 1994. The 
department has experienced several problems in the last few years 
with prestressed concrete pipe. There are over 29 miles of this 
pipe in the system. The proposed budget includes a program to 
increase inspections for early detection of problem sections. 

In summarizing the department's budget request, Mr. Mullane said 
that the proposed budget is $88 million compared to $83.2 in the 
current year for an increase of 4.8 million or 5.8 percent - 3.3 
million is uncontrollable costs ($2.1 in salary standardization and 
$1.2 in adjustments to the baseline budget). There is $1.5 million 
of controllable costs related to new or augmented programs. 
Included in the budget requests are 10 substitute positions and 8 
new positions. He described each program and position change. 

Commissioner Walker inquired about the transfer of Health and Safety 
positions to the Water Department. Mr. Mullane replied that by 
transferring these positions the department would gain greater 
access to the individuals and would not be in competition with other 
PUC departments for their services. It would allow the department 
to develop programs and to monitor more closely its day to day 
activities. Commissioner Walker requested data from all departments 
on this year's cost of Workers' Compensation and the amount proposed 
for next year . 



92-025 



Commissioner Walker suggested that the department consider how it 
would cut its budget if the department were required to make staff 
reductions as a result of early retirements. 

Commissioner Makras asked the department to present options for the 
Commission to consider as alternatives to supplying free water to 
non-enterprise City departments. 

Commissioner Chiesa inquired as to who would be responsible for 
monitoring the department's environmental compliance with State and 
other regulatory agencies if the requested position of Environmental 
Complaince Officer were not funded. Mr. Mullane replied that the 
Water Department would work with the Utilities Engineering Bureau to 
develop a monitoring mechanism. Mr. Elzey pointed out that this 
arrangement has not been satisfactory to date. That is why the new 
position in being requested. Mr. Mullane stated that this position 
is the single most important item in his budget proposal. 

President Chin opened the meeting for public comments. 

Mr. Michael Schneider, retired from the position of Acting Manager 
of PUC Health and Safety, spoke in opposition to decentralization of 
the Health and Safety Unit. He pointed out that the current unit of 
less than 10 people is comprised of individuals with various 
specialties and different levels of skill. To place an individual 
with a particular skill or specialty in one department, deprives the 
other departments of that skill or specialty. Currently, technical 
materials and vehicles are shared among staff in the unit. 
Decentralization would require duplication of materials and vehicles, 

Mr. Richard Delaney, representing Local 21, said that it was his 
belief that decentralization of Health and Safety would lead to a 
decrease in health and safety for people in the bureaus and a loss 
of the quality of assistance and quality assurance. 

Mr. Michael Cook, representing Automative Machinists, Local 1305, 
said that Health and Safety should be an independent group and not 
accountable to the person who "has to count the beans" or the person 
who is accountable for expenses having to do with health and 
safety. He said that there was a concern that Water Department 
vehicles recently installed with water tanks exceed the gross 
vehicle weight when the tank is full. 

Mr. Mullane described the major elements of the proposed Capital 
Improvement Program and their costs: Maintenance and Repairs $9.5 
million; Alternative Water Supply $1.5 million; and Hetch Hetchy 
Water Treatment Plant, environmental review and conceptual design $8 
million. Regarding the Water Treatment Plant, Mr. Mullane stated 
that the department is looking at a potential Order of 
Non-Compliance with the State Department of Health. The Water 
Department has proposed to build a filtration plant by 1998-99. In 
order to do that the City needs to sell bonds. In order to sell 
bonds, staff has determined that the ratepayers would be better 
served if the Water Department did the envi ronmnent a 1 review 
required by the Department of City Planning and the conceptual 
design which would help staff to pin down the cost of the project. 
These would give us the answers to: (1) Where's it going to be? and 
(2) What's it going to cost? Staff would then come back to the 
Commission in 1994 for authority to place it on the ballot. 



92-026 



Commissioner Walker asked if a decision had been made to build a 
filtration plant. Mr. Elzey replied that in order to be in 
compliance with State law, staff has put forth a plan which outlines 
how the department would become in compliance with State law. 
Commissioners Walker asked whether the Commission or the City had 
made a policy decision to filter Hetch Hetchy Water. Mr. Mullane 
pointed out that there had been briefings of the Commission over 
time but there has not been a formal resolution by the Commission on 
the issue. Commissioner Walker said that staff should not assume 
major policy decisions and should not include such items in the 
budget until the Commission has made a decision. Mr. Elzey replied 
that staff had reported to the Commission several times and provided 
background materials on the siting study and a briefing paper which 
outlined how staff intended to proceed. The Water Department and 
our suburban customers are facing an Order of Non-Compliance on this 
issue. Up until now, there has not been any direction from the 
Commission that staff should not comply with the law. Commissioner 
Walker asked what were the choices, and indicated that she would 
discuss this with the City Attorney. 

President Chin suggested that outside the context of the budget that 
the Commission devote some time to discussing the filtration of 
Hetch Hetchy Water and the procedural issue of implementation of 
federal and state laws. 

At 11:55 a.m. Commissioner Walker was excused. 

Commissioner Makras inquired about the use of equipment which was 
purchased for a specific project after the end of that project. He 
said that it would be useful to have information which showed that a 
new project was able to use equipment in inventory from a former 
project, thereby reducing project cost. 

PUC Bureaus 

Mr. Fred Howell, Director, Resource and Planning Development, stated 
that the budget for the bureaus totals $28 million. $16.5 million 
from the Municipal Railway, $7.5 million from the Water Department 
and $4 million from Hetch Hetchy. The allocation for funding the 
bureaus of 60 percent Municipal Railway, 14 percent from Hetch 
Hetchy and 26 percent from the Water Department, has been approved 
by the federal government for grant purposes. The revised proposed 
budget shows a reduction of approximately $2 million in salaries 
from the current level of funding. The issues involved in reducing 
the budget were: 1) reducing the Municipal Railway's contribution 
to the bureaus; 2) avoid layoffs; 3) utilizing savings from 
Proposition A, the early retirement program; and 4) possible 
restructuring within the bureaus. He summarized the costs 
associated with the functions performed by the bureaus. 
Commissioner Jefferson requested a copy of the summary. 

Mr. Elzey commented on the proposal to decentralize Health and 
Safety. He said that the proposal was developed after consultation 
with each of the General Managers. They expressed the need to have 
the resources available in order to be able to comply with Senate 
Bill 198 and also to be able to manage their operations in a way to 
effectively deal with the issues of injury and illness within their 
departments. Mr. Elzey said that he would like to have issues of 
health and safety become part of the culture within each 
organization rather than just providing oversight and not being able 
to hold managers accountable. He said he hoped that decentralization 
would result in reductions in workers' compensation claims. 



92-027 



Mr. Elzey stated that the purpose in transferring the Community 
Affairs position to PUC would be to give the Water Department. 
Hetch Hetchy and the Commission the ability to take advantage of the 
expertise of that position along with the Municipal Railway as 
regards community outreach and publicity for the departments and the 
Commission. There has been a gap and an uneven application of 
resources in this area. By transferring the position to PUC it 
allows the position to be funded by a combination of Water 
Department and Hetch Hetchy funding, thereby reducing the Municipal 
Railway budget. 

Commissioner Chiesa requested information relating to the specific 
needs of each department with respect to health and safety issues 
and the rationale for assigning specific classifications to each 
department . 

President Chin suggested that maybe there should be a Community 
Affairs position in the Water Department rather than moving the 
position from the Municipal Railway. Mr. Elzey said that there was 
a previous proposal to create a new postiion in the General Managers 
Office which was not approved because it would be an additional 
position . 

President Chin opened the meeting for public comments. 

Mr. Fred Peterson, President Transport Workers Union, Local 200, 
urged the Commission to delay adoption of the budget until the 
department abides by its agreement with the union. He stated that 
one position was eliminated from the budget without the required 
meet and confer as stated in the agreement. Mr. Elzey replied that 
he had responded to Mr. Peterson's request to meet regarding a 
position in the 1991-92 budget and agreed to schedule a meeting. 

Mr. Mike Cook, representing Local 1305, stated that the unions have 
not been consulted in a timely manner so that they may offer 
constructive information and maybe alternative ways of saving 
money. He said that his union is ready to meet and confer on any 
change that may directly or indirectly affect its members - that 
includes Health and Safety reorganization and changing the labor 
relations unit of the Municipal Railway. 



******************** 



THEREUPON THE MEETING WAS ADJOURNED: 12:35 P.M. 



Romaine A. Boldridge 
Secretary 



92-028 



^ 



I N U T E S 



n 



<> PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 



REGULAR MEETING 

Room 282, City Hall 
2:00 P.M. 
^^Eebruary 11, 1992 

COMMISSIONERS 

Gordon Chin, President 

Nancy G. Walker, Vice President 

Sherri Chiesa 

James D. Jefferson 

Victor G. Makras 



DOCUMENTS DEPT. 

2 1 1992 

SAN FRANCIOCO 
PUBUC t >^RARY 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-029 



Call to Order 2 :20 P.M. 

Present: President Gordon Chin, Commissioner Sherri Chiesa, 

Commissioner James D. Jefferson, Commissioner Victor G. 

Makras 

Excused: Vice President Nancy G. Walker 

On motion of Commissioner Chiesa, seconded by Commissioner 
Jefferson, the Minutes of the regular meeting of January 28, 1992 
were approved. 

A tape of the meeting is on file in the office of the Secretary of 
the Public Utilities Commission. 



******************* 
RESOLUTION 
NO 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted in Executive 
Session : 

92-0039 WD Approving settlement with the Regional Water Quality 
Control Board regarding the Calaveras Pipe, our 
reference No. P0072/89. 

VOTE: Ayes - Chiesa, Jefferson, Makras 
Absent - Chin 



On motion of Makras, seconded by Jefferson, the 
following resolution was adopted in Executive 
Session : 

92-0040 MR Approving settlement of litigation entitled Frances 
Samuels v. City and County of San Francisco et al, 
Superior Court No. 933-216. 

VOTE: Ayes - Chin, Chiesa, Jefferson, Makras 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted in Executive 
Session : 

92-0041 MR Approving settlement of litigation entitled Randi 
Baird v. CCSF, Superior Court No. 895-204; Price 
Cobbs v. CCSF, Superior Court No. 930-076; Jennie 
Anderson v. CCSF, Superior Court No. 922-738; Verlie 
Mae Burch v. CCSF, Superior Court No. 923-796. 

VOTE: Ayes - Chin, Chiesa, Jefferson, Makras 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0042 MR Expressing extreme concern about the possible 

reduction in transit service which will result from 
conditions outside the control of this Commission, 
namely the inaction with regard to the approval of 
replacement requisitions for retiring 9163 Transit 
Operators, and urging immediate approval of the 
subject personnel requisitions so as to allow the 
Municipal Railway to continue to provide the same 
level transit services to the public. 

VOTE: Ayes - Chin, Chiesa, Jefferson, Makras 



92-030 



Commissioner Chiesa was excused at 5:45 P.M. 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0043 HH Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for Hetch Hetchy Contract No. HH-801, Hetch Hetchy 
Road Rebuilding. 

VOTE: Ayes - Chin, Jefferson, Makras 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0044 MR Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for Municipal Railway Contract No. MR-898 for the 
reconstruction of the overhead line for the 14 
Mission Trolley Line from Persia Ave. to the Daly 
City Loop (at San Jose Ave. and Mission St.). 

VOTE: Ayes - Chin, Jefferson, Makras 

On motion of Jefferson, seconded by Makras, the 

following resolution was adopted: 

92-0045 UEB Authorizing the Manager of the Utilities Engineering 
Bureau to execute Contract Modification No. 2 with 
San Luis Construction Company in the amount of 
$7,018.61 and to extend contract completion until 
February 18, 1992. 

VOTE: Ayes - Chin, Jefferson, Makras 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0046 WD Authorizing a fund transfer of $249,000 from Object 
140, Fixed Charges to Object 302 City Attorneys 
Office to cover the projected shortfall for services 
rendered . 

VOTE: Ayes - Chin, Jefferson, Makras 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0047 MR Authorizing the General Manager to enter into an 
agreement with British Columbia Transit (BCT) of 
Vancouver, British Columbia for the loan of Muni's 
Orion Bus Coach No. 9019 for a period of two weeks, 
plus associated travel time to allow BCT to inspect 
and test a sample vehicle before making a purchase. 

VOTE: Ayes - Chin, Jefferson, Makras 



92-031 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0048 MR Requesting the Mayor to recommend to the Board of 

Supervisors a supplemental appropriation of $554,453 
to fund a projected shortfall in the City Attorney's 
budget for services rendered. 

VOTE: Ayes - Chin, Jefferson, Makras 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0049 HH Requesting the Mayor and Board of Supervisors to 

approve immediate filling of vacant classification 
5138-Superintendent of Operations. 

VOTE: Ayes - Chin, Jefferson, Makras 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0050 GM Setting date, time and place for a Special Meeting 

on Tuesday, February 18, 1992 at 12:00 noon, at 1155 
Market Street, 4th Floor. 

VOTE: Ayes - Chin, Jefferson, Makras 

Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission . 



******************** 



Announcement 

President Chin announced that the Commission met in executive 
session before this meeting and approved settlement of the following 
cases: Randi Baird v. CCSF, Superior Court No. 895-204; Frances 
Samuels v. CCSF, Superior Court No. 933-216; Price Cobbs v. CCSF, 
Superior Court No. 930-076; Jennie Anderson v. CCSF, Superior Court 
No. 922-738; Verlie Mae Burch v. CCSF, Superior Court No. 923-796; 
and Calaveras Pipe, our reference No. P0072/89. 



*******: 



Rep ort of the General Manager 

1991-92 Budget Shortfall 

Mr. Thomas J. Elzey, General Manager of Public Utilities, reported 
that the joint report from the Controller, the Mayor's Director of 
Finance and the Board of Supervisors' Budget Analyst outlined as of 
February 5, 1992 an anticipated budget shortfall for the current 
fiscal year 1991-92. That report recommended that the Municipal 
Railway anticipate a reduction in its budget of $3.5 to $4 million. 
Staff forwarded to the Commission a set of proposed adjustments. 
Due to recent information that the overall budget shortfall had been 
reduced by $16 million, Mr. Elzey suggested that the Commission 
defer discussion on the current budget shortfall and also defer 
acting to schedule a public hearing on Municipal Railway fares to be 
applied to the shortfall. He said that a revised report will be 
published soon. 



92-032 



Commissioner Jefferson stated that the Mayor had been quoted in the 
media as being opposed to fare increases. He asked whether the 
Mayor was aware of, and in agreement with, possible fare increases. 
Mr. Elzey replied affirmatively and said that the Mayor's staff have 
indicated that this item is a component that should be considered as 
an option for addressing Muni's budget shortfall. In reply to 
questions from the Commission, Mr. Elzey said that staff may want to 
revisit Muni fares for this fiscal year, however, a fare increase is 
one of the options for meeting the 10 percent budget reduction 
requested by the Mayor's Office for the 1992-93 budget . The 
Mayor's staff requested that proposals for meeting the 1991-92 
shortfall should be consistent with the 1992-93 reduced budget level. 

Commissioner Jefferson said that he wanted to clarify the policy 
direction with respect to both budget and services. He understood 
the policy direction to be that there would be no cuts in services. 
However, the department cannot fill vacancies created by early 
retirement of 75-125 drivers. Because it is too late to fill those 
positions now for this year, there will be service reductions. Mr. 
Elzey replied that the department had not received approval of 
requisitions from the Mayor's Office to backfill positions. There 
may be de facto service cuts in this fiscal year. Mr. Johnny Stein, 
General Manager, Municipal Railway, pointed out that it takes 3 
months, or 13 weeks, from approval of a requisition until an 
operator is hired, trained and on the street. 

President Chin pointed out that service cuts need to be approved by 
the Board of Supervisors. 

Commissioner Makras said that the public would see a reduction in 
service that is being forced upon them by factors outside the 
control of the Commission or the department. He asked who would be 
responsible for such a service reduction. 

Commissioner Chiesa asked whether the Mayor's Office had been 
advised that absent approval of requisitions for drivers that 
service would be cut. Mr. Elzey answered affirmatively. 

Mr. Lawrence Martin, International Representative, Transport Workers 
Union, said that police security is an issue. He said that if there 
are cuts, there will be certain lines in the City which operators 
will not work. Less bus service affects the operators' security. 

Commissioner Makras moved and Commissioner Jefferson seconded a 
resolution expressing the Commission's extreme concern about the 
possible reduction in transit service which will result from 
conditions outside the control of this Commission, namely the 
inaction with regard to approval of replacement requisitions for 
retiring 9163-Transit Operators, and urging immediate approval of 
the subject personnel requisitions, so as to allow the Municipal 
Railway to continue to provide the same level of transit services to 
the public. Resolution No. 92-0042 was unanimously approved. 

Commissioner Chiesa stated that she had received communications from 
various unions regarding issues with the 1991-92 budget and the 
1992-93 budget which the unions believe are meet and confer items in 
their Memorandums of Understanding (MOU) . She said that she wanted 
to be assured that before the Commission acts on the budget that 
staff has met its obligations under the MOUs and if there is a 
disagreement, that the area of disagreement is defined. 

Mr. Elzey said that there are many items in the budget proposals for 
both years that may be interpreted as meet and confer matters. Ms. 
Vicki Clayton, Deputy City Attorney, stated that she is reviewing 
both documents and will be advising the departments on these 
issues. Commissioner Makras requested copies of all MOUs and side 
letters. Ms. Clayton said she would provide them with indications 
as to which documents had been ratified by the Board of Supervisors 
and which had not. 



******************* 



92-033 



Item No. 8 -- To consider budget proposals for the Municipal 
Railway, the PUC Bureaus and operating and capital budget proposals 
for the San Francisco Water Department and Hetch Hetchy Water and 
Power for fiscal year 1992-93. 

Hetch Hetchy 

Commissioner Makras stated that he had reviewed materials regarding 
municipalization of PG&E and is seeking additional information. He 
asked for comments from other Commissioners. Commissioner Chiesa 
said that the purpose of a study is to determine whether or not it 
is feasible. She said that it was her opinion that the City has an 
obligation to look at it. Commissioner Chin said that taking a 
first step with a feasibility study will frame the issues. If there 
needs to be a voluminous second phase of the study, that is a second 
issue. This is an important potential revenue generating item and 
much cheaper than other suggestions. Commissioner Jefferson 
requested a description of the various phases that would need to be 
evaluated in order to determine feasibility. In these years of 
budget deficits, he questioned whether the City could afford to do 
the kind of feasibility study necessary in order to determine if 
it's practical to consider the issue. He requested the major 
benchmarks to determine how far we would need to go to make a 
decision. Mr. Elzey stated that the Board of Supervisors' Budget 
Analyst found that if after a preliminary study there appear to be 
enough benefits to move forward, that a comprehensive study would 
cost between $600,000 and $900,000. The Budget Analyst's report 
also pointed out that in New Orleans, Louisiana the municipality 
spent $6.7 million for consultants and attorneys before deciding not 
to do it. Commissioner Makras said that he needs a comprehensive 
business plan before considering the matter so that we know the 
extent of the cost of the project. 

Municipal Railway 

Ms. Michelle Witt, Acting Director of Finance, presented an overview 
of the Municipal Railway budget using charts. She said that the 
current budget is $269 million of which $198 million, or 74 percent, 
is salaries. Those salaries are: $113 million for platform (transit 
operators); $19 million for station agents and supervision; $61 
million for maintenance; $2 million for other functions; and $3 
million for administration. Ms. Witt described other areas of 
expenditure. The department spends $18 million on contractual 
services, of which $7 million is for paratransit services. Other 
City departments receive $13 million, which includes $6 million for 
Workers' Compensation; and the departments share of the PUC Bureaus 
budget is $16.3 million. 

Mr. Johnny B. Stein, General Manager, Municipal Railway, presented 
an historical summary of the department's budget showing the amount 
received from the general fund and its percentage of the 
department's total budget. Since fiscal year 1986-87 the number of 
positions has decreased as well as the percentage the general fund 
contributes to the department's total budget. 

Mr. Stein described in detail the additions to the baseline budget. 
He stated that the Mayor's instructions require the department to 
reduce its general fund requirements by 10 percent, which would be a 
reduction of $11.6 million. Mr. Stein said that staff estimates a 
loss of approximately 152 positions through the early retirement 
program. Staff estimates a savings of $3.75 million from not 
filling 40 percent of those positions. Other reductions are: $1.8 
million from a 10 percent cut in services of the PUC Bureaus; $1 
million from shifting responsibility for security to the Police 
Department; reducing special duty by $.5 million; reorganizing 
automotive maintenance to the day shift for a savings of $250,000; 
and other administrative efficiencies which brings the total savings 
to $7,875,000. 



92-034 



Mr. Stein said that the requested reduction of $11.6 million could 
not be raised from administrative cuts alone. The department has 
proposed two alternatives to achieve the $11.6 million reduction -- 
either service cuts totaling $4 million or fare increases totaling 
$4 million. In considering service cuts, the department did not 
touch the downtown service area during the peak period because it 
would affect funding under the Transit Impact Development Fee. 
Staff considered the least utilized lines. Mr. Stein said that as 
the General Manager he did not recommend service cuts but only 
submitted it as a way to analyze all alternatives. The other 
alternative is revenue enhancement through a fare increase. 

President Chin opened the meeting for public comments. 

Mr. Samuel Ganczaruk spoke against only publishing timetables twice 
a year, especially when there may be a cut in service. He said that 
the Hunters Point area would be isolated after 9:00 p.m. if the 44 
and 54 lines were cut. He supported elimination of ball park 
service . 

Mr. Norman Rolfe expressed the opinion that it would be a mistake to 
eliminate transfers because one bus cannot take people from 
everywhere to everywhere. He opposed reducing the printing of 
timetables. If the printing budget is reduced, he suggested 
eliminating the "Cable Car Guide," the "Muni Times" and "Tours of 
Discovery." He said if weekend maintenance is cut, the buses will 
not be ready Monday morning. He suggested revisiting self-service 
fares. He said that government exists to provide services to their 
citizens. In order to provide those services they have to spend 
money and the way they get that money is through taxes. He said 
that it was foolishness to think that somehow or other we could 
avoid tax increases and avoid service cuts at the same time. 

An unidentified speaker said that this proposal will result in more 
expensive service, on dirty buses with no security. He suggested 
implementing proof-of -payment and putting two sets of wires on 
Mission Street . 

Mr. David Pilpel said that a lot of fat has already been cut from 
Muni. He said that he could only find 26 positions that should be 
cut. He suggested implementing the gas tax passed by the voters in 
1980. He supported implementing self-service fares. He supported a 
fare increase as soon as possible, and said that there should also 
be an environmental review for fare increases and service cuts. 

Mr. John Barbey, representing Liberty Hill Neighborhood Association, 
said that if the 26-VALENCIA line were cut it would have a severe 
impact on the Mission District. 

Mr. James Stewart, retired Division Superintendent, Municipal 
Railway, stated that upper management has grown in the last 10 to 12 
years while service on the street has decreased. 

Mr. Lawrence Martin said that he views budget priorities as: 1) 
service; 2) the bus driver who provides that service; 3) security; 
4) supervision and 5) maintenance. He suggested looking at the 
non-service areas before cutting any of these areas. He said that 
the union was very concerned about the security issue and street 
supervision. The proposed cut of service to Candlestick Park means 
the battle line has been drawn. Mr. Martin stated that there are 
two outstanding issues in the current MOU of $178,000 for a 
hypertension study and $65,000 for a health and safety facility 
which have not been funded and upon which the union is starting to 
charge interest. 

Commissioner Chiesa said that she understood that ballpark service 
is part of overtime and would not result in layoffs. 

Mr. Elzey replied that staff has not proposed layoffs. The proposal 
is that we would put the service out to bid and we would bid it at 
cost and if the Municipal Railway bids it at cost and becomes the 
operator, that eliminates the subsidy. There would not be any 

ayoffs. Commissioner Makras said that the rationale would be to 
t rovide equal service at the cheapest price to the public. 

92-035 



President Chin asked if the union had a position on fare increases. 
Mr. Martin replied that San Francisco has one of the lowest fares of 
any major city in the United States. Many areas have fares of $1.25 
to $1.50 plus a charge for transfers. He said that he did not know 
of any major city with a fare of under $1.00. 

Mr. John Bardis said that he was concerned about a budget of $200 
million in personnel without information as to how that personnel is 
distributed and what their relationship is to the service. 

At 4:45 p.m. the meeting was recessed. 
At 4:55 p.m. the meeting was reconvened. 

Regarding the two MOU issues presented by the union, Mr. Elzey said 
that staff had reviewed the provisions of the MOU and it was their 
belief that payments made in fiscal years 1989-90 and 1990-91 
totaling $356,000 completed the City's obligation for a stress and 
hypertension study. In terms of the health facility, $65,000 and an 
additional amount from the Registrar of Voters is required in order 
to build that facility. In the City's current economic times it is 
unclear whether we are committed to paying that money at this point 
in time. Given the budgetary crisis, if we could hold off on that 
and fund it out of next year's budget we would attempt to do that. 
Regarding the suggestion to move forward on imposing a gasoline tax, 
that would be contrary to instructions from the Mayor's office. 

Mr. Elzey stated that there are several items staff would like to 
move forward with and want to meet and confer with the unions. 
These items include: 1) Proof of Payment; 2) a management plan to 
allow managers to assist in street supervision; 3) reducing 
absenteeism; 4) increasing the number of part-time operators; and 5) 
implementation of drug testing, including random testing. Staff 
wants to meet and confer on these issues before the next Commission 
meeting on the budget. 

Mr. Bobbie Brown, President, Transport Workers Union, Local 250A, 
said that some of these items have already been negotiated or were 
never brought up. 

The Commission went through the budget proposal page by page and 
asked questions. 

Commissioner Makras asked how advertising revenue could be increased 
or enhanced, particularly since 1992 is an election year. 

Mr. Alan Siegel, Acting Manager, Community Affairs, stated that when 
staff renegotiated the advertising contract last year with 
Transportation Display, Inc. (TDI), part of the agreement was that 
there would not be any alcohol or tobacco advertising starting 
January 1, 1992. Over the years approximately 20-25 percent of 
their revenues have been from alcohol and tobacco. That includes 
election years. As a result, the guarantee that TDI pays the City 
was lowered. The budget reflects that lower guarantee. There is a 
formula in place that if TDI sells a certain percentage more than 
the guarantee, they would pay the City more. 

Commissioner Jefferson asked if rehabilitation was included in the 
drug testing program. Mr. Stein said it was not included. Mr. 
Elzey said that the issue of rehabilitation was still outstanding. 
There are existing programs like the Employees Assistance Program 
(EAP) and other community based programs. He said that he expected 
that there may be a need for something greater than that. But the 
question of who pays for it, who is responsible for it and how will 
it fit into our overall program of operations, have not been 
resolved . 



92-036 



Commissioner Makras questioned the amount of $543,000 for 6 months 
for training new employees to replace employees who leave. He asked 
how will training go up that much when there is already a training 
program in place. Mr. Stein replied that this assumes a 10 percent 
failure rate for drugs and 5 percent for alcohol based upon the 
department's 1-month experience in 1988. Mr. Stein said that he 
would furnish the Commission the assumptions the department used to 
prepare this budget request. 

Mr. Lawrence Martin expressed the opinion that the failure rate 
would not be that great. He said that rehabilitation must be 
included in the process and the union wants to meet and confer on 
this item. 

Commissioner Makras stated that he believed the program could be 
implemented for less than $1.3 million. 

Commissioner Makras asked how the Trust Fund benefits compare to 
benefits for other City employees. Mr. Stein responded that the 
Trust Fund is a result of passage of Proposition G which amended the 
Charter in 1967 and fixed wages, benefits and holidays for bus 
operators. Other City employees do not have comparable Charter 
provisions . 

Commissioner Chiesa asked if it were realistic to carry over the 
same amount of $4.8 million for payment of claims and judgments. 
Ms. Witt replied affirmatively and said claims are cyclical, 
however, the trend is upward, and we may need more money next year. 

Commissioner Chiesa stated that she would not approve any budget 
which deletes money for Municipal Railway security. 

At 5:45 p.m. Commissioner Chiesa was excused. 

Commissioner Chin asked if there was a Charter requirement that 
mandates the Municipal Railway to pay the Bureau of Light, Heat and 
Power for electricity. Mr. Moran replied that electricity is 
provided at cost. It is a cost recovery from the Municipal Railway 
just like from all general fund departments. If that money did not 
come in then it could not be turned over to the general fund. Mr. 
Elzey suggested that in the future staff could develop materials for 
the Commission to consider how funds flow between departments. 

Commissioner Makras questioned the pass through provisions for 
material and labor increases in the tire rental contract. He asked 
why the City would not perform this service in-house rather than 
through contract. Mr. Philip Adams, Deputy General Manager, 
Maintenance, explained that the provisions of this contract are 
similar to what all transit agencies do. 

Commissioner Chin requested an itemization of the offset for 
services of the PUC as it related to reassignment of Health and 
Safety positions. 

Commissioner Chin said that he was opposed to shifting the Community 
Affairs position to PUC. Commissioner Makras agreed. 

Commissioner Jefferson requested a memorandum on the Planning and 
Programming units of the Municipal Railway describing how many 
people, the cost, what do they do and what specific projects are 
they working on. 

Commissioner Makras requested another category for balancing the 
budget, more administrative efficiencies of $4 million and the 
consequences of implementing those efficiencies. 

President Chin requested that staff rank in priority order the 
administrative efficiencies. 

Mr. Pilpel spoke in opposition to personnel cuts. 



92-037 



Commissioner Makras requested a list of free services being provided. 

Commissioner Jefferson requested information as to how the PUC 
Bureaus provide their services to the Water Department and Hetch 
Hetchy . 

President Chin expressed concern that the preception may be to cut 
administration without considering how such action may affect 
service. He pointed out that the budget reduction is really $20 
million -- $11 million from the general fund and $9 million less in 
State revenues. He said that we need to make the best case we can. 

President Chin questioned the fact that a supplemental appropriation 
was needed to fund services of the City Attorney for this year, 
while the budget proposes to cut funding for next year. Ms. Witt 
replied that staff has been looking at ways of monitoring services 
of the City Attorney and trying to reduce our spending. Mr. 
Krueger, Utilities General Counsel, pointed out that there is no 
rationale to cut the City Attorney's budget. The office only reacts 
to lawsuits filed against the City and does not file, or rarely 
files, a lawsuit on their own. He described this as planned 
underfunding which will put the City Attorney in the position of 
having to come back to the Commission requesting more money next 
year . 

President Chin requested an itemization of the reductions in the 
Bureaus which total $957,335. 

President Chin asked how the proposed plan to shift security to the 
Police Department had been received by that department. Mr. Elzey 
replied that since it is overtime for the Police Department, he 
believed they would miss the opportunity to earn overtime. He said 
that security had always been a priority for PUC and the Municipal 
Railway. This item was suggested as one which would have a minimal 
impact on service. Commissioner Makras asked how we could provide 
security without paying time-and-a-half and requested statistics on 
arrests for the money already spent. He expressed concern about how 
the security function is operated. 

Mr. Martin spoke in favor of having a dedicated police unit for the 
Municipal Railway. 

President Chin asked about the possibility of cutting the budget for 
printing. Mr. Stein replied that he was of the opinion that the 
department should either do no schedules or correct schedules. 
Commissioner Makras agreed, and said that if we change routes or 
change fares we must print schedules. 

Commissioner Jefferson asked about the elimination of the 2 Labor 
Relations positions. Mr. Stein explained that labor negotiations 
would become the responsibility of each Deputy and also the General 
Manager. Mr. Elzey added that the Bureau of Personnel would also 
pick up some of the workload. 

President Chin said that discussion of service reductions and fare 
increases would be deferred to February 18, 1992. 

Mr. Krueger said that he would check the notice requirements for 
meeting at a different location next week. After review of the 
Administrative Code, Mr. Krueger stated that there is a requirement 
for a 30-day notice to have a meeting at a location other than the 
normal meeting place, however, there is a provision in case of an 
emergency the Commission may by resolution designate some other 
appropriate place as its temporary meeting place. The resolution 
should reflect the fact that no other place was available in City 
Hall and that this was unexpected. The main issues are that the 
meeting is necessary, and it was not anticipated. 

Commissioner Makras moved to declare an emergency with regard to the 
need to conduct a special meeting in order to complete the budget by 
the Mayor's deadline. Commissioner Jefferson seconded. This motion 
was unanimously approved. 

92-038 



Commissioner Makras moved, Commissioner Jefferson seconded, to 
designate 1155 Market Street, 4th Floor, as the meeting place on 
February 18, 1992, and directed that appropriate notices be given 
including posting a notice that we are meeting at the other location 
beginning at 12:00 noon. 

Resolution No. 92-0050 was unanimously adopted. 



******************* 



THEREUPON THE MEETING WAS ADJOURNED: 7:25 P.M. 



Romaine A. Boldridge 
Secretary 



92-039 



i 



I N U T E S 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

SPECIAL MEETING 



1155 Market Street, 4th Floor 
12:00 Noon 

February 18, 19 92 



COMMISSIONERS 

Gordon Chin, President 

Nancy G. Walker, Vice President 

Sherri Chiesa 

James D. Jefferson 

Victor G. Makras 



pOCUMEIMTS DEP< 

m 6 - 1992 

SAN FRANCISCO 
PUBUC JBRARV 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-040 



Call to Order 12:15 P.M. 

Present: President Gordon Chin, Vice President Nancy G. Walker, 

Commissioner Sherri Chiesa, Commissioner James D. Jefferson 

Commissioner Victor G. Makras arrived at 12:20 p.m. 

On motion of Commissioner Walker, seconded by Commissioner Jefferson, 
the Minutes of the special meeting of February 3rd and the regular 
meeting of February 11th, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of 
the Public Utilities Commission. 



******************* 

RESOLUTION 
NO. 

On motion of Jefferson, seconded by Chiesa, the 
following resolution was adopted: 

92-0051 FM Authorizing the issuance of not-to-exceed 

$135,000,000 principal amount of San Francisco Water 
Revenue Bonds, 1992 Refunding Series A, authorizing 
execution and delivery of a Second Supplemental 
Indenture providing for the issuance of said bonds, 
adopting an Official Statement describing said 
bonds, authorizing execution of a purchase contract 
selling said bonds, authorizing execution of an 
escrow agreement pertaining to the proceeds of said 
bonds, delegating to the General Manager of the 
Commission and Assistant General Manager, Finance, 
of the Commission power to complete said Indenture, 
Official Statement, Bond Purchase Contract and 
Escrow Agreement, authorizing distribution of 
documents and authorizing taking of necessary action 

VOTE: Ayes - Chin, Chiesa, Jefferson 
Noes - Walker, Makras 

On motion of Jefferson, seconded by Chiesa, the 
following resolution was adopted: 

92-0052 FM Amending the definition of Federal Securities as 

defined in Section 1.0.1 of Resolution No. 85-0413 of 
the Commission which authorized the issuance by the 
Commission of $104,000,000 of its San Francisco 
Water Revenue Bonds, Series of 1985, and authorizing 
execution of a Supplemental Letter of Instructions 
pertaining to the substitution of investment 
securities on deposit in escrow fund for the Series 
of 1985 Bonds, delegating to the General Manager of 
the Commission Power to complete said Supplemental 
Letter of Instructions and authorizing taking of 
necessary action. 

VOTE: Ayes - Chin, Chiesa, Jefferson 
Noes - Walker, Makras 

Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission . 



******************** 



92-041 



Report of the General Manager 

1991-92 Budget 

Mr. Thomas J. Elzey, General Manager of Public Utilities, reported 
that the Mayor's Office will be issuing budget instructions for 
balancing the 1991-92 budget by reguiring reductions from the five 
largest departments - the Municipal Railway, Fire, Police, Social 
Services and Health Departments. He stated that staff would review 
the budget instructions and come back to the Commission with a 
recommendation of proposed adjustments. Mr. Elzey noted that there 
were no changes to the 1992-93 budget instructions. 

ft******************* 



Public Hearing 

Item No. 5 -- To consider budget proposals for the Municipal 
Railway, the PUC Bureaus and operating and capital budget proposals 
for the San Francisco Water Department and Hetch Hetchy Water and 
Power for Fiscal Year 1992-93. (Continued from Meeting of February 
11, 1992). 

President Chin opened the meeting for public comments. 

Mr. Edward Baker, Vice President, Sunset West Portal Council, spoke 
in opposition to proposed service cuts and route revisions of the 
66-QUINTARA bus line which he said was a necessary means of 
transportation for people who work in the downtown area. 

Ms. Jano Oscherwitz, representing Local 790, spoke against: not 
back filling the three Transit Information Clerk positions; the 
reassignment of the Bureau of Health and Safety staff; and the 
decentralization of Labor Relations. She also pointed out that due 
to the numerous assaults in the Muni Metro stations, that additional 
station agent positions were needed. 

Ms. Joanne Mock spoke against eliminating the 3-JACKSON and 
83-PACIFIC lines. 

Mr. John-Erik O'Brien stated that a petition had been signed by 
numerous concerned Muni passengers opposing the proposed elimination 
of the 2-CLEMENT and 3-JACKSON lines. He was of the opinion that a 
fare increase along with significant service reductions does not 
make sense. 

Ms. Bernadette Hooper stated that due to the nature of her job as a 

retailer, that the proposed elimination of the 3-JACKSON line would 
endanger her safety since she works late into the evening. 

Mr. Lawrence J. Martin, International Representative, Transport 
Workers Union, spoke on several issues concerning service cuts, 
reduction in service, street supervision, the issue of security and 
maintenance . 

Mr. Dick Delaney, representing Professional and Technical Engineers, 
Local 21, stated that the decentralization of Health and Safety was 
not in the best interest of the PUC. 



".: - o\: 



Mr. Michael S. Cook, representing Automotive Machinists Union, Local 
1305, commented on several items of concern to the union related to 
the Muni budget, such as, shift changes, early retirement, the wage 
freeze and overtime reductions. 

Mr. Norman Rolfe, representing San Francisco Tomorrow, stated that a 
fare increase would be preferable to service cuts and urged the 
Commission not to make any changes which would be false economy and 
in the long run raise costs and lower revenues. 

Mr. David Pilpel commented on the 1991-92 budget shortfall and the 
fact that there will be many reguisitions that will not be filled. 
He stated that these de facto service cuts need to be publicized. 
He suggested that efforts should be made to limit special duty 
assignments to operators. Mr. Pilpel was of the opinion that this 
budget proposal provides for higher fares, less supervision, less 
reliability, less service, less maintenance, more graffiti and no 
security. He stated that higher fares would be acceptable in lieu 
of service cuts and that environmental and ridership impacts should 
be assessed. 

Ms. Claire Zvanski, representing SEIU, Local 790, spoke against the 
proposed personnel substitutions and cuts, especially in the 1800 
series classifications. 

Mr. Dave Feltham, representing Municipal Planners Association, Local 
21, echoed Mr. Delaney's comments. He expressed concern about 
contracting for two transit corridor studies while eliminating 
planning personnel who could do those studies. 

Ms. Anne Bloomfield, representing Pacific Heights Residents 
Association, spoke in opposition to the proposed elimination of the 
3-JACKSON line. She stated that before any definite decision is 
made about cuts in Muni service that there needs to be more public 
meetings. Ms. Bloomfield said that she would be in favor of having 
a fare increase rather than dropping service. 

Municipal Railway 

Mr. Peter Straus, Director of Planning, Municipal Railway, described 
proposed service cuts to the Commission with the use of a map. He 
stated that staff was not advocating service cuts in a pure sense 
but that the service cuts which he described were only a proposal to 
meet mandated savings of approximately $4 million. Mr. Elzey stated 
that if the Commission decides to incorporate these proposed service 
cuts in the 1992-93 budget that there would still have to be public 
hearings held before any service cuts were implemented. 

Ms. Michelle N. Witt, Acting Finance Director, Bureau of Finance, 
stated that another option would be to increase Muni fares which 
would generate approximately $4.3 million in revenue. The fare 
increase proposal would raise the adult cash fare from 85?! to $1.00, 
and add discounted single ride tokens at 90?f each. The adult Fast 
Passes would be increased from $30 to $32. The senior cash fare 
would be increased from 15?f to 25?!. The senior pass would increase 
from $4 . 50 to $5 . 

Commissioner Walker asked where would the tokens be purchased. Ms. 
Witt replied that they would use their current distribution system 
where Fast Passes are purchased. 

Mr. Stein stated that the demand for ridership is increasing in San 
Francisco, therefore, the staff recommendation is not to reduce 
service. He said that a fare increase would be preferable to any 
service cuts, especially since San Francisco has the lowest fare in 
the entire Bay Area. 

Commissioner Makras stated that in order to have clean, safe and on 
time buses that staff must look at a long range plan if we are going 
to consider an increase in fares. 



92-043 



Commissioner Chiesa said that she would not vote for any budget that 
would take away any funds allocated for security. She stated that 
she was in favor of approving a fare increase but was opposed to any 
service cuts . 

The meeting recessed at 2:32 P.M. 

The meeting was reconvened at 2:46 P.M. 

Mr. Stein gave a detailed description of additional administrative 
efficiencies in Muni's budget for 1992/93, per the request of the 
Commission at the February 11, 1992 meeting. He stated that 9% of 
Muni's budget is administration and these suggested administrative 
cuts would mean only one thing to Muni - layoffs. The package of 
additional administrative reductions would result in eliminating 71 
positions, requiring layoffs for 63 employees and saving $5 
million. Mr. Stein said that these cuts would have an impact on the 
delivery of service because even though the position may be 
eliminated the function of the department would still exist. 

Commissioner Jefferson stated, as a matter of principle, that this 
Commission should not recommend any further administrative cuts that 
would affect service. 

Commissioner Walker moved and Commissioner Chiesa seconded that this 
Commission not entertain any service reductions as a mechanism to 
balance the budget, with the exception of ballpark service. This 
motion was unanimously approved. 

Mr. Elzey pointed out to the public that there would be no policy 
decision made by the PUC to reduce Muni service. 

Commissioner Makras moved and Commissioner Walker seconded to 
approve the additional administrative reductions, totalling $5 
mi llion. 

President Chin stated that he was not in favor of this motion 
because it exceeds the Mayor's request of a 10% reduction in the 
budget. Commissioner Jefferson stated that should Commissioner 
Makras' motion fail, that he would move that this Commission approve 
reductions in the 1992/93 budget totalling $7.8 million in 
administrative services and $2 million in additional position cuts 
limited to the management and supervisory levels. In addition, he 
would add security and supervision on the streets with a proposed 
fare revenue package which would include possible Transit Impact 
Development Fee (TIDF) funding. Commissioner Makras' motion failed. 

Mr. Elzey stated that staff is pursuing possibile uses of TIDF funds 
with the City Attorney's Office and would report to the Commission 
at a later date . 

President Chin asked whether or not the $1.3 million had to be spent 
within the next fiscal year for the drug testing program. Ms. Witt 
replied that January 1, 1993 would be effective startup date for 
random drug testing. Mr. Stein stated that it is mandated that 50% 
of Muni's "safety-sensitive" employees be randomly tested the first 
year the program is in force. 

Commissioner Walker stated that it is the City's responsibility to 
provide a program of rehabilitation to employees who are identified 
as having a problem with drugs and alcohol. 

Commissioner Jefferson moved and Commissioner Walker seconded to 
approve $1.3 million for a drug and alcohol testing program. She 
requested that a portion of those funds be restricted with the 
condition that staff bring forward a proposal for a rehabilitation 
program. Commissioner Walker also included in that motion that: 1) 
staff meet and confer with the unions on this issue; 2) when the 
budget is submitted to the Mayor that staff send forward a letter to 
the Mayor requesting action on the drug and alcohol issues as they 
affect public safety employees; and, 3) a report be prepared as to 
how many lawsuits have been settled in the last five years that are 
drug or alcohol related. This motion was unanimously approved. 

92-044 



Mr. Elzey discussed the proposal to decentralize the Bureau of 
Health and Safety and whether or not to deploy staff to the various 
departments of PUC . Commissioner Chiesa asked what would be the 
cost impact on Muni's budget with the reassignment of the PUC Health 
and Safety positions. Mr. Elzey replied that there would be no 
budgetary effect since decentralization is based upon the allocation 
of costs before reassignment of personnel. 

Commissioner Chiesa made a motion to reject the proposal to 
decentralize the Bureau of Health and Safety. Commissioner Walker 
seconded. This motion was unanimously approved. 

Commissioner Chin moved that the transfer of the Community Affairs 
position to PUC General Manager's Office be rejected. Commissioner 
Chiesa seconded. This motion was approved by a Commission vote of 
4-0 - Commissioner Walker was not present at the time of the vote. 

The meeting recessed at 5:10 P.M. 

The meeting was reconvened at 5:21 P.M. 

Mr. Kirk Lawson, Manager, Bureau of Management Efficiency and 
Productivity, Public Utilities Commission, explained issues related 
to: 1) police security in terms of hiring more officers using 
straight time pay versus overtime pay; and 2) statistics on arrests 
and assaults before and after overtime funding began. 

Commissioner Jefferson said that the public is demanding greater 
security on Muni. He commented that security should be funded over 
and above the current level and that we need to find a way to 
allocate more resources to security. He suggested that if it were 
funded through a fare increase, that we could guarantee the public 
that the money would be used for security. 

Mr. Elzey recognized the need for more security and said that 
security on Muni would attract ridership. He recommended that no 
cuts be made to security. 

Lt . Ed Fortner, San Francisco Police Department, cited problems with 
interdepartment communications as affecting security. He stated 
that he would compile a draft report within 30 days listing 
alternative uses of the money allocated to the SFPD with a breakdown 
of various options related to improving security. 

Mr. Elzey stated that staff would come back to the Commission by 
June 1, 1992 with a plan on how the $1,050,000 will be utilized. 

Commissioner Makras moved and Commissioner Walker seconded to 
maintain the Burns Security contract for $621,000. The motion 
passed unanimously. Commissioner Makras moved and Comissioner 
Walker seconded to retain $1,050,000 for police security pending a 
report on better communications. The motion was unanimously 
approved . 

Commissioner Walker asked staff what they were doing to reduce the 
costs of workers' compensation. Mr. Stein responded that they were 
doing everything legally possible to monitor workers' compensation 
claims. Commissioner Walker requested monthly that a list of names 
on workers' compensation be provided the Commission. She suggested 
that one way to reduce workers' compensation is to hire another 
claims adjuster. 

Commissioner Jefferson moved and Commissioner Makras seconded that 
10% of the money alloted for workers' compensation be used to fund 
an outside claims adjuster. 

Mr. Lawson stated that the PUC is participating in the overall 
Citywide task force to reduce workers' compensation. There is a 
proposal before the Mayor to budget $1.5 to $2 million in next 
year's budget to hire an outside claims agency that would lower the 
amount of claims per adjuster. Commissioner Makras withdrew his 
motion with the stipulation that staff allocate funds to pay for an 
outside claims adjuster after the budget is approved by the Mayor. 



92-045 



Commissioner Makras said that he would not vote for a fare increase 
unless there is a benefit for the public, an increase in security 
and graffiti cleanup. He moved to adopt a program similar to RTD ' s 
program in Los Angeles which promises service within 15 minutes or 
the passenger rides for free. The motion died for lack of a second. 

Commissioner Jefferson spoke in favor of including additional 
efficiencies at the administrative level. 

President Chin stated that the reality of the situation is that 
transportation will be greatly impacted as a result of the Mayor's 
instructions to reduce Muni's budget by 10%. Commissioner Chiesa 
argued against submitting the budget absent a fare increase. 
Commissioner Makras stated that if we propose a fare increase that 
we must promise to have clean, safe and on time buses. 

President Chin moved and Commissioner Chiesa seconded that the 
1992/93 budget to the Mayor include administrative efficiencies 
totalling $7.2 million, a proposed fare increase of $4.3 million, 
and a proposal to implement a token distribution and accessibility 
program. Also, it should be articulated to the Mayor's Office that 
PUC * s goal is to have a transportation system that is clean, safe 
and on time and to give maximum attention to looking at additional 
revenue sources, such as, TIDF funds to maintain and enhance 
services in the downtown area. Muni's history of budget cuts should 
also be reiterated. The motion carried by a 3-2 vote with 
Commissioner Makras and Commissioner Jefferson voting against the 
motion . 

President Chin recessed the meeting to 12 noon, February 19, 1992 at 
the same location. 



******************* 



THEREUPON THE MEETING WAS RECESSED AT: 8:15 P.M. 



Romaine A. Boldridge 
Secretary 



92-046 



MINUTES 



u*. 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

RECESSED MEETING 



COMMISSIONERS 



1155 Market Street, 4th Floor 
12:00 Noon 
«^> February 19, 1992 



DOCUMENTS r 

SAN FRANCISoO 

Gordon Chin, President -~ 

Nancy G. Walker, Vice President 

Sherri Chiesa 

James D. Jefferson 

Victor G. Makras 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92 1 ' 



The meeting reconvened at 12:15 P.M. 



Present: President Gordon Chin, Vice President Nancy G. Walker, 
Commissioner Sherri Chiesa, Commissioner James D. 
Jefferson, Commissioner Victor G. Makras 



A tape of the meeting is on file in the office of the Secretary of 
the Public Utilities Commission. 



*rt*:fc:ft*3 , c*:'e:*rtyc: , c 



RESOLUTION 
NO. 

On motion of Chin, seconded by Chiesa, the following 
resolution was adopted: 

92-0053 GM Adopting Fiscal Year 1992/93 operating and capital 
Budgets for all departments and bureaus under the 
jurisdiction of the Public Utilities Commission. 
(Continued from Special Meeting of February 18, 
1992) . 

VOTE: Ayes - Chin, Walker, Chiesa 
Noes - Jefferson, Makras 



A copy of the above resolution is on file in the 
office of the Secretary of the Public Utilities 
Commission . 



rtrtrt*rtrtrtrt*rtrt**rt: , ::*:: , ::*:rt* 



Public Hearing 

Resolution 92-0053 -- To consider budget proposals for the Municipal 
Railway, the PUC Bureaus and operating and capital budget proposals 
for the San Francisco Water Department and Hetch Hetchy Water and 
Power for Fiscal Year 1992-93. (Continued from Special Meeting of 
February 18, 1992) . 



Commissioner Jefferson inquired as to whether there was a formula 
for determining how much is contributed to the general fund from 
Hetch Hetchy 's budget. Mr. Moran responded that it was established 
some time ago that a long term average of $25 million per year be 
given to the general fund. When it appears that is not possible, 
then it becomes a negotiating process between the department, the 
Mayor and the Controller's Office. Commissioner Jefferson expressed 
the opinion that it would be desirable to contribute additional 
money to the general fund by deferring certain projects. Mr. Moran 
stated that the department had done everything possible to maximize 
their contribution to the general fund. 

Commissioner Walker spoke in support of a feasibility study related 
to the municipalization of PG&E. She said that she was well aware 
that if a feasibility study were included in the budget, the Mayor 
would reject such a proposal. She said she did not want to go 
through that exercise. Commissioner Walker was of the opinion that 
the City needs to take serious steps to consider this study. 
President Chin added that he also was in support of a feasibility 
study . 



92-048 



Commissioner Jefferson referred to staff's budget proposal to 
increase professional services by $1.2 million and asked what 
exactly were those services for. Mr. Moran replied that the funds 
would primarily be used for legal services for protection of the 
City's water rights. This is a project which is currently 
underway. Commissioner Makras expressed concern about the increase 
in spending for legal services prior to actual litigation. 

President Chin stated that if there was a need for on-going services 
that we need to take a look at in-house legal services versus 
outside legal counsel. Mr. Moran stated that the City Attorney's 
fees have also increased and that the City Attorney's Office has 
been working closely with staff related to the City's water rights. 

Mr. George Krueger, General Counsel for Public Utilities, stated 
that currently there are four attorney's set aside to focus mainly 
on defending the City's water rights. 

Commissioner Walker asked how much revenue was in this budget 
related to the filtration project. Mr. Moran replied that currently 
there were no funds allocated towards the filtration project. 
Commissioner Walker requested that the filtration of Hetch Hetchy 
water in relation to the City's water rights be discussed at the 
next Executive Session scheduled for February 25, 1992. 

Commissioner Jefferson requested a list of specific products that 
are generated from the various legal consulting firms. 

Commissioner Makras moved and Commissioner Chiesa seconded to 
approve the Hetch Hetchy budget reflecting the change of one Health 
and Safety position. This motion was unanimously approved. 

Commissioner Walker moved and Commissioner Makras seconded to 
approve the Bureau of Light, Heat & Power budget. This motion was 
unanimously approved. 

Water Department 

Mr. John P. Mullane, General Manager, Water Department, pointed out 
that the Water Department is an enterprise fund and that 60% to 65% 
of the Water Department's revenue is generated from water sales to 
the suburban wholesale customers. 

Commissioner Jefferson questioned why City departments do not pay 
excess use charges and why staff had not recommended in the 1992/93 
budget a proposal to address this issue. He stated that City 
departments basically have no incentive to conserve water since they 
are not penalized for excess use. 

Mr. Mullane said that he was in full agreement with the 
Commissioner. City departments should be charged for water. But 
given the current deficit in the general fund, it would be extremely- 
difficult to charge City departments for their water at this time. 
He stated that staff had looked at a number of alternatives that 
would require City departments to pay without having a direct impact 
on the general fund. 

Commissioner Jefferson remarked that City departments should at 
least pay for their excess use charges. Commissioner Walker 
expressed her opinion that it was not fair that City departments 
have free water when other customers are being rationed their use of 
water. She recommended that City departments be charged excess use 
charges . 

Commissioner Jefferson moved and Commissioner Makras seconded to 
establish a policy that City departments be charged for excess water 
use beginning next year and directing staff to bring forward a plan 
on how to implement this policy decision. This motion was 
unanimously approved. 



92-049 



Commissioner Jefferson asked, given the recent rains, whether it was 
still necessary to budget $7.5 million for the purchase of water 
from the State water bank. Mr. Mullane replied that by April 1, 
1992, staff would be in a better position of knowing just what their 
water supply situation would be and whether or not there would be 
the need to continue rationing. 

Commissioner Jefferson moved and Commissioner Makras seconded to 
approve the Water Department budget, as revised, including the 
addition of two Health and Safety positions. This motion was 
unanimously approved. 

PUC Bureaus 

Mr. Thomas J. Elzey, General Manager of Public Utilities, stated 
that the PUC Bureau budgets reflect the changes made by the 
Commission on the issue of decentralizing Health and Safety, 
security and the Community Affairs position. 

Commissioner Walker requested a report on the number of employees 
who receive free parking. She also requested information on the 
public education efforts of the departments. 

Commissioner Makras moved and Commissioner Jefferson seconded a 
motion to approve the PUC Bureau's budget, as revised. This motion 
was unanimously approved. 

Municipal Railway 

Mr. Elzey requested the Commission to reconsider incorporating the 
two labor relations positions totalling $170,000 and the fencing 
program totalling $80,000 in Muni's budget. He stated that the two 
labor relation positions in Muni's budget are assigned to negotiate 
labor relations contracts and that the funds allocated for the 
fencing program pays for services provided by the San Francisco 
Conservation Corps to help in the cleanup of graffiti from Muni 
vehicles . 

Commissioner Makras moved and Commissioner Jefferson seconded to 
restore the fencing program for $80,000. This motion was 
unanimously approved. 

President Chin stated that he was not prepared to vote to amend the 
budget to restore the two labor relations positions at this time. 
He suggested that the General Manager bring forward a budget 
revision proposal highlighting the labor relations functions of Muni 

Commissioner Chiesa requested regular reports on graffiti removal 
highlighting when fencing in certain yards was completed. 

Commissioner Jefferson questioned the need for planning positions in 
two Muni departments and engineering positions within Muni's 
Maintenance Engineering Department and the duplication of positions 
in the Utilities Engineering Bureau (UEB) . Mr. Elzey replied that 
Muni's Maintenance Engineering Department primarily focuses on the 
engineering necessary for maintenance functions of Muni in 
particular, whereas, UEB focuses on the development, design, 
engineering and building of projects on a larger scale. 

Mr. Phil Adams, Deputy General Manager, Maintenance Engineering, 
Municipal Railway, explained the functions of the various planning 
positions within Muni and stated that the role of Muni planners was 
totally different in terms of responsibility and background. 

Mr. Adams explained in detail the reorganization of the Muni 
Maintenance Department and stated that there would be no direct 
impact on the Muni budget since it is a no cost internal adjustment 
of the Maintenance Department. 



92-050 



Commissioner Chiesa asked if there would be any layoffs as a result 
of this reorganization. Mr. Adams replied that they do not 
anticipate any layoffs from the reorganization. 

Commissioner Jefferson moved and Commissioner Walker seconded to 
approve the reorganization of the Muni Maintenance Division with the 
stipulation that there be no layoffs and that a full presentation of 
this proposal be brought before this Commission within 30 days. 
This motion carried with a 4-1 vote with Commissioner Makras voting 
no . 

Mr. Elzey reguested that the Commission approve restoring two 
purchaser positions to the Muni budget that Muni would have paid for 
in the Purchasing Department. There would be no budget impact. 

Commissioner Jefferson moved and Commissioner Chiesa seconded to 
approve the substitution of two purchaser posisions. This motion 
was unanimously approved. 

President Chin requested a briefing in 30 to 60 days on the entire 
Transit Impact Development Fee (TIDF) program and eligibility 
criteria . 

On motion of Commissioner Chin, seconded by Commissioner Chiesa, 
Resolution No. 92-0053 was approved. The motion carried with a 3-2 
vote with Commissioner Jefferson and Commissioner Makras voting no. 



Artrtrtrt:'crt**::**rt**:*::*r: , :: , :rtrtrt 



THEREUPON THE MEETING WAS ADJOURNED AT: 3:24 P.M. 



Romaine A. Boldridge 
Secretary 



".:■ ()'• i 



2 



>sh^ 



^^ ~R I N U T E S 

. PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

REGULAR MEETING 



Room 282, City Hall 
2 :00 P.M. 



'<--; 



February 25, 1992 



DOCUMENTS REPT. 

MAR 6 - 1992 



COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



SAN FRANCISCO 
PUBLIC L'BRARY 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 

Construction Management 

Financial Management 

information Systems 

Management Efficiency and 
Product ivi ty 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-052 



Call to Order 2:05 P.M. 



Present: President Gordon Chin, Commissioner James D. Jefferson, 
Commissioner Victor G. Makras, Commissioner Michael E. 
Hardeman 

Commissioner Patricia A. Carson arrived at 2:20 P.M. 



A tape of the meeting is on file in the office of the Secretary of 
the Public Utilities Commission. 



******************* 



ELECTION OF OFFICER FOR VICE PRESIDENT 



Commissioner Jefferson nominated Commissioner Victor G. Makras for 
the office of Vice President. Commissioner Chin seconded. 

Commissioner Makras was elected Vice President for the remainder of 
the term. 

VOTE: Ayes - Chin, Jefferson, Carson, Hardeman 
******************* 

RESOLUTION 
NO 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0054 MR Approving collection of charges for damages for the 
month of December 1991, against the San Francisco 
Municipal Railway from miscellaneous debtors in the 
amount of $16,318.27 and write-off compromise 
reductions for comparative negligence in the amount 
of $1,655.27; and Bureau of Light, Heat & Power from 
miscellaneous debtors in the amount of $200. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0055 WD Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for Water Department Contract No. WD-2118, CDD Yard 
Underground Tank Replacement. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0056 WD Awarding San Francisco Water Department Contract No. 
WD-2073, 8-Inch Ductile Iron Main Installation in 
California Street between Steiner Street and 
Presidio Avenue and in Octavia Street between 
Vallejo and Union Streets, in the amount of $315,220 
to Ranger Pipelines and A. Ruiz, AJV, San Francisco, 
CA. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-053 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0057 PT Approving the Non-Civil Service and Temporary 
appointments and removals as indicated on the 
Temporary Employment Activity Roster, for the month 
of January, 1992 . 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0058 MR Authorizing and directing the Municipal Railway to 
extend service on the 12-FOLSOM line; authorizing 
discontinuance of service at all times on a portion 
of the 83-PACIFIC line; and reguesting Board of 
Supervisors' approval not to disapprove discontinu- 
ance of service on the 83-PACIFIC line. 

VOTE: Ayes - Chin, Jefferson, Carson, Hardeman 
Noes - Makras 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0059 MR Authorizing the General Manager of Public Utilities 
to execute Modification No. 3 to the personal 
services contract with George Pattee to extend the 
duration of the contract through June 30, 1992 for 
work being performed in the rehabilitation of Market 
Street Railway Streetcar #798 at Deuel Vocational 
Institute in Tracy, California. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0060 WD Authorizing execution of a 2,100 acre livestock 

grazing lease to Tony and Russ Fields, dba Fields 
Livestock, on Water Department land located in 
Alameda and Santa Clara counties, for a term of 
approximately 9 months, commencing upon execution 
date of lease and ending October 31, 1992, at a 
rental of $20,000 per year, payable $10,000 
semi-annually in advance. 

VOTE: Ayes - Chin, Jefferson, Carson, Hardeman 
Noes - Makras 



At 4:55 P.M. Commissioner Jefferson was excused. 



On motion of Hardeman, seconded by Carson, the 
following resolution was adopted: 

92-0061 WD Authorizing the General Manager of the Water 

Department to enter into a Joint Funding Agreement 
with the U.S. Geological Survey (USGS) in order to 
initiate a regional groundwater assessment study in 
San Francisco Water Department's service areas 
within San Mateo, Santa Clara and Alameda Counties. 

VOTE: Ayes - Chin, Makras, Hardeman, Carson 
92-054 



RESOLUTION 
NO 

On motion of Makras, seconded by Chin, the following 
resolution was adopted: 

92-0062 WD Commending Martin H. Lieberman on the occasion of 

his retirement for 32 years of dedicated service to 
the City and County of San Francisco and extending 
best wishes to him and his family for many years to 
come . 

VOTE: Ayes - Chin, Makras, Carson, Hardeman 

At 5:00 P.M. Commissioner Jefferson returned. 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0063 HH Authorizing the General Manager of Hetch Hetchy 
Water and Power to enter into an agreement with 
McLeod & Associates for confidential economic 
consulting services related to the Urban Water 
Management Plan Act and the Bay Delta Hearings being 
conducted by the State Water Resources Control 
Board, and for services related to Federal Energy 
Regulatory Commission matters. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0064 HH Authorizing the General Manager of Hetch Hetchy 
Water and Power to enter into an agreement with 
David M. Dornbusch & Company, Inc. for confidential 
economic consulting services related to the Urban 
Water Management Plan Act and the Bay Delta hearings 
being conducted by the State Water Resources Control 
Board, and for services related to Federal Energy 
Regulatory Commission matters. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Makras, seconded by Hardeman, the 
following resolution was adopted in Executive 
Session : 

92-0065 HH Authorizing the General Manager of Utilities 
Engineering Bureau to terminate Hetch Hetchy 
Contract HH-830 with Healy Tibbitts, Inc., in 
accordance with the requirements of Section 65, 
Termination of Contract , of the General Provisions 
for violation of said Section 65 and Section 42, 
Contractor to Supply Sufficient Men and Material . 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-055 



RESOLUTION 
NO 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0066 FM Declaration of official intent of the Public 

Utilities Commission of the City and County of San 
Francisco to reimburse certain capital expenditures 
from proceeds of taxable or tax-exempt indebtedness 
related to the purchase or acquisition of 150 Oak 
Street . 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted in Executive 
Session : 

92-0067 GM Approving the appointment made by the General 

Manager of Public Utilities of Michelle N. Witt as 
Assistant General Manager, Finance, PUC to be 
effective immediately. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission . 

J-. ********************* 

Old Business 

President Chin welcomed on behalf of the Commission, Commissioner 
Michael E. Hardeman and Commissioner Patricia A. Carson as new 
members of the Public Utilities Commission. 

************************ 

Announcement 

President Chin announced that the Commission met in Executive 
Session on February 25, 1992 and approved the appointment of 
Michelle N . Witt as Assistant General M a n a g e r of Finance of the 
Public Utilities Commission. 



Report of the General Manager 



FY 1991-9 2 Budge t Status Report 

Mr. Thomas J. Elzey, General Manager of Public Utilities, stated 
that staff had received instructions from the Mayor's Office 
requesting that Muni reduce its budget by $1 million in order to 
balance the 1991-92 budget. He referred to the February 21, 1991 
memorandum forwarded to the Mayor's Office highlighting Muni's 
proposed deficit reduction program totalling $1 million. 

Mr. Elzey also said that replacement requisitions for Muni operators 
who are taking advantage of early retirement are very close to being 
cleared by the Mayor's Office. He updated the Commission as to what 
impact this particular situation would have on Muni service. 



92-056 



Hetch Hetchv Filtration 

Mr. John P. Mullane, General Manager, Water Department, gave a 
presentation on the concept of filtering Hetch Hetchy water. He 
explained the history of filtration in the San Francisco water 
system and said that prior to 1966 all the water in the system was 
unfiltered. Since 1966, filtering plants had been built in an 
effort to disinfect the water through a process of chlorination and 
f i ltration . 

Mr. Mullane stated that by 1993 all surface water in the State of 
California must be filtered, based on EPA regulations that are being 
enforced by the State Department of Health Services. He noted that 
San Francisco had the only surface water in the state that was not 
filtered, therefore, in order to be in compliance with EPA 
regulations, the department must filter their surface water. An 
executive summary of the Hetch Hetchy Water Treatment Plant Siting 
Study was completed in December 1991. The purpose of that study was 
to provide background data and costs for the potential siting of a 
Hetch Hetchy filtration plant to treat the existing water supply. 

Mr. Mullane stated that the department must respond by the end of 
February to the State Department of Health as to whether we intend 
to filter, what our schedule for compliance will be and what our 
financing plan will be. 

He explained the various options the Commission could take in 
relation to the mandated law, such as: 1) opting to do nothing, 
which would mean we would be out of compliance with both state and 
federal regulations with potential legal consequences; 2) not 
filtering the vast majority of water but rather filtering water that 
only goes through the current San Andreas system, which would mean 
that San Francisco and most of its suburban customers that are 
located north of the plant would be in compliance and the vast 
majority of customers located south of the plant would be out of 
compliance; 3) seeking legislative remedy to change the law; 4) 
installing advance disinfection at Hetch Hetchy; or 5) comply with 
the State regulations to filter all surface water. Mr. Mullane 
recommended that the department choose option 5 and comply with both 
state and federal regulations to avoid potential legal ramifications. 

Commissioner Jefferson asked what the difference was between 
disinfection and filtering of water. Mr. Steve Leonard, Manager, 
Water Quality Control, replied that disinfection means to kill the 
organisms that are in water, whereas filtration adds to that by 
removing those organisms. 

Fi.esident Chin asked who will share in the cost of the filtration 
project. Mr. Mullane replied that the rate payers of San Francisco 
will assume the responsibility to pay for any capital development 
until the project is on line and at that time the department's 
suburban customers will begin to pay for the project through the use 
of the rate structure. 

Commissioner Makras requested that staff provide the Commission with 
documentation on the Hetch Hetchy filtration project. Mr. Elzey 
pointed out that staff will be sending a letter to the State 
Department of Health by February 28, 1992 on the proposed project 
schedule. He assured the Commission that staff has taken its 
responsibility on this issue very seriously. 



************************ 



92-057 



Resolution No. 92-0058 -- Authorizing and directing the Municipal 
Railway to extend service on the 12-FOLSOM line; authorizing 
discontinuance of service at all times on a portion of the 
83-PACIFIC line; and requesting Board of Supervisors' approval not 
to disapprove discontinuance of service on the 83-PACIFIC line. 

Mr. Angelo Figone, General Superintendent, Schedules and Service 
Planning, Municipal Railway, gave a presentation with the use of 
charts of four alternative proposals on the discontinuance of 
service on the 83-PACIFIC line and extension of service on the 
12-FOLSOM line. Public meetings were held on September 25, 1991 
presenting the various alternatives. As a result of the meeting, 
several residents in the Pacific Heights area spoke in support of 
alternative #4. Their chief complaint was that the high number of 
buses travelling through the neighborhood result in unnecessary 
noise, pollutants and congestion and that ridership demand did not 
justify the level of service offered, especially in the evenings and 
on weekends. Mr. Figone noted that alternative #4 was amended to 
reflect that the 83-PACIFIC line be re-routed south on Polk Street 
and west on Jackson to Van Ness. He stated that these proposed 
changes could be implemented with no increase in vehicle 
requirements or operating costs, therefore, he recommended that the 
Commission approve the proposed resolution to extend service on the 
12-FOLSOM and discontinue service on a portion of the 83-PACIFIC 
line at all times, as amended. 

President Chin invited public comments. 

Mr. Samuel R. Ganczaruk spoke in support of alternative #4 with the 
exception that service on the 12-FOLSOM line should operate on 
Saturday until 8:00 p.m. 

Mr. Proctor Jones, representing 200 residents in the Pacific Heights 
area, spoke in support of alternative #4 provided there would be no 
bus service on holidays, weekends and that service start at 6:30 
a.m. and terminate at 7:00 p.m. He complimented staff on their 
planning efforts in connection with the 83-PACIFIC line. 

Mr. Authur Roth spoke in favor of proposal #4 because of the 
tremendous noise pollution and the underut i lizat ion of the 
83-PACIFIC line during most of the day, except during rush hours. 

Ms. Enid Lim, representing Chinatown Trip, spoke in support of the 
proposed change and stated that the extended 12-FOLSOM line would 
provide service from Pacific Heights and Chinatown to the Financial 
District, South-of -Market and the Mission which would service the 
Chinatown community very well. 

Mr. Whitman McGowan spoke in support of this route change, although 
was opposed to any additional diesel buses travelling up his street, 
which would result in unnecessary pollution in his neighborhood. 

Mr. Marti J. Austin, representing Pacific Heights Resident 
Association, spoke in favor of alternative #4. 

Ms. Barbara Failing spoke in opposition to alternative #4 with the 
amended change. She stated that with the current level of diesel 
buses passing through her neighborhood, additional diesel buses 
would be intolerable. 

Mrs. Sharon Bullock Libresco spoke in support of alternative #4 but 
suggested elimination of a bus stop between Van Ness Avenue and 
Franklin Street. 

Mr. Jon Baer spoke in favor of the proposed route change, as 
amended. He expressed that this change would eliminate the noise 
factor created by diesel buses between Van Ness Avenue and Franklin 
Street . 



92-058 



Ms. Doris Marie Hagopian spoke in opposition to staff's proposal and 
requested that the evening and weekend service to Franklin Street be 
maintained because their only mode of transportation is the Muni. 

Ms. Deanna R. Brinkman, representing residents of the Broadway and 
Pacific Heights neighborhood, spoke in support of alternative #4, as 
amended . 

Mr. Laurence Fishkin spoke in support of alternative #4, as amended 
but suggested that due to the noise factor caused by the 83-PACIFIC 
bus stop on Fillmore Street and Jackson Street, that the stop be 
re-routed down towards Fillmore Street and Washington Street. 

Mr. David Pilpel noted that historically there used to be cable car 
service in the Pacific Heights area. Mr. Pilpel commented that 
there would be no night, weekend or holiday service as a result of 
this change, therefore, it would be a reduction in Muni service. 

Mr. Josh Libresco echoed the same view as his wife, Mrs. Sharon 
Bullock Libresco. 

Commissioner Makras presented his reasons for voting against the 
proposed change due to the fact that night, weekend and holiday 
service would be discontinued. He expressed his opinion that 
because ridership demand did not justify the level of service 
offered, that was no reason to discontinue service. Commissioner 
Makras remarked that we have a responsibility to send a message to 
the residents of San Francisco that no matter where one lives that 
transportation will be provided. 

President Chin said that, given the public testimony in support of 
alternative #4, as amended, he was in favor of staff's 
recommendation . 

On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, Resolution No. 92-0058 was approved. Commissioner Makras 
voted against the motion. 



* * A * * * * ft * * * * * * * * * ft ± ± * * * * 



I tern No . 11 -- Authorizing the circulation of a Request-f or-Proposals 
for professional services to undertake a Bayshore Corridor System 
Planning Study. 

Mi. Fred Howell, Director, Resource and Planning Development, 
recommended that a Request-f or-Proposa Is (RFP) be circulated for a 
Bayshore Corridor System Planning Study. He said this project is to 
be funded from the Transportation Sales Tax (Proposition B) , which 
will examine options for local Muni operations. Mr. Howell remarked 
that the purpose of the study is to identify an alternative that is 
inexpensive enough so that the department would not have to apply 
for federal funds. The Department of City Planning and other 
non-profit organizations are encouraged to bid on this project. 

Mr. Dave Feltham, representing Municipal Planners Association, Local 
21, stated that Local 21 was not opposed to the study but did have 
serious concerns about the idea of performing this kind of work 
through personal services contracts to private consultants as 
opposed to in-house. Mr. Feltham said there are transit planner 
classifications both at Muni and the Department of City Planning 
that are trained to perform such a study and was of the opinion they 
should be given the opportunity to perform such work. From 
economical standpoint, Mr. Feltham expressed that it would make more 
sense to have City staff perform the work rather than contracting 
the work out to an outside consultant. 



92-059 



Mr. Elzey stated that the Department of City Planning and other 
non-profit organizations will be encouraged to submit proposals to 
perform this work. Staff would then evaluate their ability to 
deliver this project on time and in a cost-effective way. Mr. Elzey 
noted that the Bayshore Land Use Plan Study was performed by 
planners in the Department of City Planning and asked Mr. Feltham 
how long it took to conduct that study. Would it be fair to say 
that it took years to complete? Mr. Feltham replied affirmatively. 

Commissioner Jefferson asked what the relationship was between the 
Transportation Authority and the PUC as it relates to the Bayshore 
Corridor Study. Mr. Elzey replied that the Transportation Authority 
authorized and workordered funds to Muni to manage the Bayshore 
Corridor Study. The Transportation Authority has the authority to 
determine how the Prop. B Sales Tax monies are spent. 

Ms. Brigid Hynes-Cher in, Executive Director, Transportation 
Authority, explained that the Transportation Authority is a funding 
agency for projects that are in Transportation Expenditure Plan, 
which was approved by the voters in 1989. The Transportation 
Authority reviews the reguests for funds from City departments and 
decides whether the project is eligible under the expenditure plan 
and then provides the money to the department to do the actual 
work. Then it is up to the department as to whether or not they 
choose to perform the work in-house or not. 

Commissioner Jefferson stated that the Mayor and Board of 
Supervisors had made it very clear that they wanted this study 
completed in a timely manner so as to improve service to the 
Bayshore community. Commissioner Jefferson expressed concern that 
the process would become very lengthy if federal funding were 
contemplated. He said in view of the fact that Proposition B monies 
are available to fund improved transit in this area, why is the RFP 
so heavily weighted in the direction of the Federal Transit 
Administration (FTA) process? 

Mr. Howell responded that the intent is to keep us eligible during 
the process of the study and said that there is no commitment that 
federal funding will be pursued. 

Commissioner Jefferson suggested that the calendar item be continued 
in order to allow the Commission more time to review the scope of 
work in terms of what staff is trying to achieve. 

The item was continued to allow the Commission more time to review 
the scope of work. 



Resolution No. 92-0060 -- Authorizing execution of a 2,100 acre 
livestock grazing lease to Tony and Russ Fields, dba Fields 
Livestock, on Water Department land located in Alameda and Santa 
Clara counties, for a term of approximately 9 months, commencing 
upon execution date of lease and ending October 31, 1992, at a 
rental of $20,000 per year, payable $10,000 semi-annually in 
advance. (Continued from January 28, 1992 meeting.) 

Commissioner Makras made a motion to approve the lease with two 
changes: 1) the late charge be raised to 6% of the rental fee, and 
2) should the tenant request an assignment of the lease, that they 
reimburse the City its cost up to $750. 

President Chin spoke in support of Commissioner Makras' motion but 
was concerned about what implications this would have in reference 
to overall lease policy. 



92-060 



Commissioner Hardeman expressed his opinion that this item should be 
approved as is, since staff had already negotiated an agreement with 
the tenant based on what they have historically done. He said that 
any change in policy should be applied to future leases. 
Commissioner Carson concurred with Commissioner Hardeman's remarks. 
Commissioner Makras withdrew his motion. 

Mr. Elzey stated that staff will be reviewing all forthcoming leases 
to make sure they are in line with current industry standards. 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, Resolution No. 92-0060 was approved. Commissioner Makras 
voted against the motion. 



A**************?: 



Public Comments 

Mr. David Pilpel expressed his views on several items, such as, the 
filtration of Hetch Hetchy water; reduction of Muni service in FY 
1991-92; problems related to the J & M project; the implementa- 
tion of a self-service fare collection and proof -of -payment system; 
outreach on the Short Range Transit Plan; early retirement (Prop. 
A); and, the proposal to privatize a portion of the Municipal 
Rai lway . 



± * ± * ± ± ± * ± * * i; * * * * * t; * X * * * ± 



THEREUPON THE MEETING WAS ADJOURNED: 5:30 P.M. 



Romaine A. Boldridge 
Secretary 



92-061 



MAIN PUBLIC LIBRARY 
Government Documents 
Civic Center-lst Floor 



MINUTE 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

REGULAR MEETING 



Room 282, City Hall 

2:00 P.M. 

March 10, 1992 



DOCUMENTS PE£T. 

mar a < )&& 



COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



SAN ERAWCJSCiO 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-062 



Call to Order 2:15 P.M. 

Present: President Gordon Chin, Commissioner James D. Jefferson, 
Commissioner Victor G. Makras, Commissioner Patricia A. 
Carson, Commissioner Michael E. Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner Makras 
the Minutes of the special meeting of February 18th, recessed 
meeting of February 19th, and the regular meeting of February 25, 
1992 were approved, as amended. 

A tape of the meeting is on file in the office of the Secretary of 
the Public Utilities Commission. 

******************* 

RESOLUTION 
NO 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted in Executive 
Session: 

92-0068 MR Approving settlement of litigation titled Verna P. 

Greeley v. CCSF, et al., Superior Court No. 928-063. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0069 WD Requesting the Controller to draw warrants in 

payment of claims against the San Francisco Water 
Department, totalling $32,500. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0070 FM Authorizing the General Manager of Public Utilities 
to request the Controller to transfer $255,000 from 
Project 863, Generator Radio Frequency Monitoring to 
Project 829, System Control and Data Acquisition 
(SCADA) System Modifications and Additions. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0071 WD Approving the transfer of $60,000 from the Water 
Department W710.1 Millbrae Shops I Project to the 
Water Department W755.0 Stanford Heights Seismic 
Study Project. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-063 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0072 HH Accepting the work performed under San Francisco 
Hetch Hetchy Water and Power Contract No. HH-803, 
Cherry Valley Domestic Water Supply, as satis- 
factorily completed; approving Credit Contract 
Modification No. 2 in the amount of $3,997.89; and 
authorizing final payment in the amount of $2,620 to 
Lee Engineering Enterprises, Inc., Contractor. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0073 EC Authorizing the Bureau of Energy Conservation to 

modify its contract with Brown, Vence and Associates 
for a no-cost time extension of six months from 
contract certification by the Controller, to 
continue the Capital Project Design Review Program. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0074 GM Designating Tuesday, April 14, 1992 at 2:00 p.m., in 
Room 282, City Hall, San Francisco, as the date, 
time and place for a public hearing by the Public 
Utilities Commission to consider proposals for rate 
increases for water service and water supplied by 
the San Francisco Water Department to its retail and 
wholesale customers. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0075 GM Commending Sherri A. Chiesa for her many contribu- 
tions as a member of the Public Utilities Commission 
and for her dedicated service to the people of the 
City and County of San Francisco; and extending 
personal best wishes for good health and happiness 
in the future. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-064 



RESOLUTION 
NO 

On motion of Hardeman, seconded by Carson, the 
following resolution was adopted: 

92-0076 GM Commending Nancy G. Walker for her many contribu- 
tions as a member of the Public Utilities Commission 
and for her dedicated service to the people of the 
City and County of San Francisco; and extending 
personal best wishes for good health and happiness 
in the future. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0077 WD Directing the San Francisco Water Department to 

collect payment for excess use charges computed on 
water consumption by City Non-paying Municipal 
Accounts, effective with meter reads which occur on 
or after July 1, 1992; and directing the San 
Francisco Water Department to report to the 
Commission on or before February 3, 1993, regarding 
the feasibility of collecting payment on all water 
charges billed to Non-paying Municipal Accounts, 
effective with meter reads which occur on or after 
July 1, 1993. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0078 WD Authorizing the General Manager of the Water 

Department to negotiate and execute a professional 
services agreement with Westin Engineering, Inc. for 
an amount not-to-exceed $750,000 for the preparation 
of a Master Plan for the Development of a Total 
Utility (SCADA) System. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0079 HH Authorizing the General Manager of Hetch Hetchy 
Water and Power to sign a professional services 
contract with Dr. Robert Yoshiyama, Consultant, for 
temporary and expert services on matters related to 
fisheries in connection with the Bay-Delta hearings 
and other matters related to water supply. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-065 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0080 UEB Authorizing the Manager of Utilities Engineering 

Bureau to amend the amendment with Morrison-Knudsen 
Engineers, Inc. to increase the contract cost 
ceiling by $40,000 from $320,000 to $360,000, and 
extending the term of the contract to June 30, 1992 
to provide as-needed design and field engineering 
services . 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Makras, the 
following resolution was adopted: 

92-0081 UEB Awarding San Francisco Water Department Contract No. 
WD-2107, Sunol Valley Water Treatment Plant 
Improvements, in the amount of $4,569,960 to 
Nibbi-Lowe Construction, AJV, San Francisco, CA; and 
reguesting the Controller to transfer $1,994,000 
from FAMIS Account No. 692830 into FAMIS Account No. 
692285 for this project. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0082 UEB Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for San Francisco Water Department Contract No. 
WD-2115, San Andreas Pipeline No. 3 - Rehabilitation, 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0083 UEB Authorizing the Utilities Engineering Bureau to 

request qualification statements, interview, select 
and recommend a qualified archaeological consultant 
firm to provide services for the H793.3 Hetch Hetchy 
Septic System Rehabilitation Project at Early Intake, 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-066 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Carson, the 
following resolution was adopted: 

92-0084 UEB Authorizing the Manager of Utilities Engineering 

Bureau to negotiate and enter into a contract with 
Gannett-Fleming, Inc. to provide specialized 
engineering services for federally funded projects 
in a contract amount not-to-exceed $150,000 for a 
term not-to-exceed 2 4 months; and with Sverdrup 
Corporation to provide specialized engineering 
services for City funded projects in a contract 
amount not-to-exceed $200,000 and for a term 
not-to-exceed 24 months. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission. 



************************ 



Approval of Minutes 

Commissioner Makras requested that the minutes of the February 25th 
meeting be amended to reflect his comments regarding the issue of 
Hetch Hetchy Filtration. He stated that the City had received a 
letter of censure which outlined substantial penalties if we do not 
comply with the State law. He requested that the Water Department 
provide the Commission with documentation on this issue which would 
include the department's business plan and what they have been doing 
for the past five or six years. 



************************ 



Report of the General Manager 

Joint Powers Board 

Mr. Thomas J. Elzey, General Manager of Public Utilities, stated 
that the Joint Powers Board (JPB) had determined that additional 
funds may be needed in FY 1991-92 and FY 1992-93 to supplement the 
operations of the peninsula commute service, which is under the 
jurisdiction of the JBP. He stated that the exact dollar amounts 
had not been determined but that they range from approximately 
$250,000 for FY 1991-92 to $750,000 for FY 1992-93. Funding for 
this service previously had been budgeted out of the Muni budget. 
Mr. Elzey said that staff is currently engaging in discussions with 
the Mayor's Office as to whether or not those additional funds would 
be paid out of the City's General Fund as opposed to reducing Muni's 
budget. He stated that staff would report back to the Commission on 
the specifics within the next month or so. 



92-067 



Privatization of the Municipal Railway 

Mr. Elzey informed the Commission that several unsolicited proposals 
from the California Bus Association regarding the privatization of 
the Municipal Railway were submitted proposing ways in which they 
could save the Municipal Railway money. Mr. Elzey said that he had 
communicated to the California Bus Association the Public Utilities 
Commission's interest in exploring all proposals, which could result 
in saving money for the City. He stated that he was reviewing the 
issue of privatization very seriously since this could affect both 
the operations of Muni and current agreements with the unions. 



************************ 



Announcement 

President Chin announced that the Commission met in Executive 
Session on March 10, 1992 and approved settlement of Verna P. 
Greeley v. CCSF. 



************************ 



Resolution No. 92-0077 -- Directing the San Francisco Water 
Department to collect payment for excess use charges computed on 
water consumption by City Non-paying Municipal Accounts, effective 
with meter reads which occur on or after July 1, 1992; and directing 
the San Francisco Water Department to report to the Commission on or 
before February 3, 1993, regarding the feasibility of collecting 
payment on all water charges billed to Non-paying Municipal 
Accounts, effective with meter reads which occur on or after July 1, 
1993. 



Mr. John P. Mullane, General Manager, Water Department, noted that 
during the budget review last month, the Commission unanimously 
voted that the Water Department pursue collecting excess use charges 
in FY 1992-93 from City departments that are exempt from payment of 
water charges. Mr. Mullane stated that approval of this resolution 
would authorize staff to collect excess use charges from City 
departments with the concept of coming back to the Commission in FY 
1992-93 to discuss the feasibility of collecting all water charges. 

Commissioner Makras referred to the draft notification letter and 
stated that the letter should be modified to reflect a positive 
tone. He suggested that the letter to City departments mention that 
the department would still receive their regular allotment without 
charge but in all fairness to the public should be charged for 
excess use. 



On motion of Commissioner Jefferson, seconded by Commissioner Makras 
Resolution No. 92-0077 was approved. 

************************ 



92-068 



Resolution No. 92-0078 -- Authorizing the General Manager of the 
Water Department to negotiate and execute a professional services 
agreement with Westin Engineering, Inc. for an amount not-to-exceed 
$750,000 for the preparation of a Master Plan for the Development of 
a Total Utility (SCADA) System. 

Mr. Mullane explained that the SCADA system was a computerized 
control program that would allow the Water Department to monitor the 
performance of its entire system to identify various problems, to 
analyze and suggest corrective actions, to operate the system 
automatically, and to provide the capability to capture data about 
the system. He explained the review process and stated that the 
selection committee had selected Westin Engineering Company as the 
top organization to prepare such a Master Plan. 

Commissioner Jefferson asked if the necessary training of personnel 
was incorporated in the Master Plan and what the time frame was for 
completing the project. 

Mr. Mullane replied that the preparation of the Master Plan is the 
first phase of a multi-phased program but that an actual training 
program had not been designed as of yet. He did say that an 
emergency response plan is a major component of the Master Plan, 
which would require extensive training providing the circumstances 
around an emergency situation. Mr. Mullane assured the Commission 
that a training program would be part of the total package and 
stated that the program would have no value unless it could be 
accessible and understandable to those who will use it. Mr. Mullane 
also said the time frame for completing this project would be 
approximately 3 to 4 years, which would include the training of 
personnel . 

On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, Resolution No. 92-0078 was approved. 



************************ 



Resolution No. 92-0082 -- Approving the plans and specifications as 
prepared and recommended by staff, and authorizing Bid Call for San 
Francisco Water Department Contract No. WD-2115, San Andreas 
Pipeline No. 3 - Rehabilitation. 

Mr. Richard E. Brandt, Manager, Utilities Engineering Bureau, stated 
that about a year and a half ago the San Andreas Pipeline had a 
break which resulted in an investigation and on-going litigation. 

Commissioner Makras inquired as to the rationale with respect to the 
liquidated damages of $500 a day. Mr. Brandt replied that 
liquidated damages were based upon what could be justified as a 
damage. He said that since the Water Department was not a profit 
corporation, only the department's additional costs could be 
justified as damages. 

Commissioner Makras stated that he would like the Commission to 
explore a more realistic penalty. He said we may not be able to 
assess damage in a dollar amount because we are not private 
enterprise but we are serving millions of people with a product and 
when our efficiency breaks down in several areas the cost could be 
compounded. Commissioner Makras suggested that in future bid 
proposals that staff look at various options which would be 
economically disadvantageous to the contractor if he did not meet 
the completion schedule. 



92-069 



Commissioner Jefferson pointed out that the Charter says we have to 
select the lowest responsive bidder. He suggested that staff 
explore not only whether or not the contractor is the lowest 
responsive bidder but if there is a way to factor in their 
gualif ications and on time performance. 

On motion of Commissioner Makras, seconded by Commissioner Jefferson, 
Resolution No. 92-0082 was approved. 



************************ 



Resolution No. 92-0084 -- Authorizing the Manager of Utilities 
Engineering Bureau to negotiate and enter into a contract with 
Gannett-Fleming, Inc. to provide specialized engineering services 
for federally funded projects in a contract amount not-to-exceed 
$150,000 for a term not-to-exceed 24 months; and with Sverdrup 
Corporation to provide specialized engineering services for City 
funded projects in a contract amount not-to-exceed $200,000 and for 
a term not-to-exceed 24 months. 

Mr. Phil de la Cruz, Division Manager, Administrative Services, 
Utilities Engineering Bureau, stated that the contract for 
specialized engineering services was divided into two contracts, one 
for $150,000 for federally funded projects to Gannett-Fleming, Inc., 
and $200,000 for City funded projects to Sverdrup Corporation. 

President Chin asked if it was generally staff's direction to split 
up contracts federally and locally for MBE/WBE purposes. 

Mr. Arnold Baker, Contract Compliance Officer, Public Utilities 
Commission, stated that this was the first time that an as-needed 
contract had been split up into two contracts, since there was a 
separation of funds federally and locally. Mr. Baker said that the 
PUC encourages its departments to reduce contracts to their lowest 
possible economic division whenever possible so that we could invite 
more participation by minorities and disadvantaged businesses. 

Commissioner Jefferson asked what the level of minority participation 
was in this contract. Mr. Baker replied that on the federally funded 
side there was 35% disadvantaged business enterprise participation. 
He noted that the local ordinance sets no goals for minority 
participation on the local side. But, he said, staff expects to 
achieve 35% MBE/WBE participation. 

On motion of Commissioner Jefferson, seconded by Commissioner Carson, 
Resolution No. 92-0084 was approved. 

************************ 



Public Comments 

Mr. Michael Cook, representing Automotive Machinist Union, Local 
1305, noted that the sixty days review process for Transportation 
Displays, Inc. (TDI) to submit a substitute subcontracting firm was 
due. He stated that he would hope this could be resolved as quickly 
as possible. Mr. Cook also expressed his concern that the total PCC 
Streetcar Restoration project should not be contracted out. 



92-070 



Mr. J. B. Martin, representing Automotive Machinist Union, Local 
1305, asked that the Commission reconsider offering lifetime Muni 
Employee Passes to retiring Commissioners of the Public Utilities 
Commission . 

Mr. Chris Pagne was of the opinion that the PCC Streetcar 
Restoration project should not be awarded to PGH Wong Engineering 
because of their use of dangerous solvents in cleaning the motors 



************************ 



THEREUPON THE MEETING WAS ADJOURNED: 3:13 P.M. 



Romaine A. Boldridge 
Secretary 



92-071 



1* 



/& 



MINUTES 



// 



PUBLIC UTILITIES COMMISSION 



CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

March 24, 1992 



DOCUMENTS DEPT. 

m 1 1992 

SAN FRANCi.1 
PUBLIC LIBRARY 



COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-072 



Call to Order 2:46 P.M. 



Present: President Gordon Chin, Vice President Victor G. Makras, 

Commissioner James D. Jefferson, Commissioner Patricia A. 
Carson, Commissioner Michael E. Hardeman 

On motion of Commissioner Hardeman, seconded by Commissioner Makras 
the Minutes of the regular meeting of March 10, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of 
the Public Utilities Commission. 



******************* 



RESOLUTION 
NO 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted in Executive 
Session: 

92-0085 MR Approving settlement of litigation titled Phyllis 
Brown v. CCSF, et al., Superior Court No. 907-136 

VOTE: Ayes - Chin, Makras, Jefferson, Hardeman 
Noes - Carson 



On motion of Makras, seconded by Hardeman, the 
following resolution was adopted in Executive 
Session : 

92-0086 MR Approving settlement of litigation titled Jennie J 
Smith v. CCSF, et al., Superior Court No. 934-961. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted in Executive 
Session : 

92-0087 MR Approving settlement of litigation titled Andrew 

Mitchell v. CCSF, et al., Superior Court No. 934-961 

VOTE: Ayes - Chin, Jefferson, Carson, Hardeman 
Noes - Makras 



On motion of Hardeman, seconded by Carson, the 
following resolution was adopted: 

92-0088 MR Requesting the Controller to draw warrants in 
payment of claims against the San Francisco 
Municipal Railway, totalling $93,000. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-073 



RESOLUTION 
NO 

On motion of Hardeman, seconded by Carson, the 
following resolution was adopted: 

92-0089 FM Approving collection of charges for damages for the 
month of January 1992, against the San Francisco 
Municipal Railway from miscellaneous debtors in the 
amount of $23,884.82 and write-off compromise 
reductions for comparative negligence in the amount 
of $746.69; San Francisco Water Department from 
miscellaneous debtors in the amount of $274.90; and 
Bureau of Light, Heat & Power from miscellaneous 
debtors in the amount of $3,729.95. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Carson, the 
following resolution was adopted: 

92-0090 FM Approving collection of charges for damages for the 
month of February 1992, against the San Francisco 
Municipal Railway from miscellaneous debtors in the 
amount of $15,044.48 and write-off compromise 
reductions for comparative negligence in the amount 
of $716.48; San Francisco Water Department from 
miscellaneous debtors in the amount of $3,587.86; 
and Bureau of Light, Heat & Power from miscellaneous 
debtors in the amount of $138.84. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Carson, the 
following resolution was adopted: 

92-0091 WD Approving Contract Modification No. 1 in the amount 
of $1,036,194.37 to San Francisco Water Department 
Contract No. WD-2037R, Calaveras Pipeline 
Replacement . 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Makras, the 
following resolution was adopted: 

92-0092 WD Awarding San Francisco Water Department Contract No. 
WD-2093, 6-Inch Ductile Iron Main Installation in 
Perry, Stillman, Freelon, Welsh, Zoe and Ritch 
Streets, in the net amount of $299,710 to P & M 
Pipelines and Coast-Geo Constructors, Inc., AJV, San 
Francisco, CA. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-074 



RESOLUTION 
NO 

On motion of Hardeman, seconded by Carson, the 
following resolution was adopted: 

92-0093 WD Designating Tuesday, April 14, 1992 at 2:00 p.m., in 
Room 282, City Hall, San Francisco, as the date, 
time and place for a public hearing by the Public 
Utilities Commission for considering a proposal for 
the continuation of some level of rationing to 
maintain water savings throughout the San Francisco 
Water Department's system; and considering adoption 
of a per capita rationing program for San Francisco 
residents . 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 

On motion of Hardeman, seconded by Carson, the 
following resolution was adopted: 

92-0094 PM Approving the Non-Civil Service and Temporary 
appointments and removals as indicated on the 
Temporary Employment Activity Roster, for the months 
of January and February, 1992. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Carson, the 
following resolution was adopted: 

92-0095 GM Approving Bardel, Inc. as substitute subcontractor 
to Transportation Displays, Inc. (TDI) for carding 
and posting activities on Municipal Railway vehicles 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Abstain - Hardeman 



On motion of Makras, seconded by Hardeman, the 
following resolution was adopted: 

92-0096 HH Commending Joe DeGraca on the occasion of his 

retirement for 30 years of dedicated service to the 
City and County of San Francisco and extending best 
wishes to him for many years to come. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0097 MR Authorizing the San Francisco Municipal Railway to 
extend the time of award for the Procurement and 
Installation of the Advanced Train Control System 
(MR-1034R) to 120 days after receipt of bid and to 
enter into negotiations with Alcatel Canada, Inc.; 
and requesting Board of Supervisors' approval. 

VOTE: Ayes - Chin, Jefferson, Carson, Hardeman 
Noes - Makras 



92-075 



RESOLUTION 
NO 



On motion of Makras, seconded by Carson, the 
following resolution was adopted: 

92-0098 FM Commending Bruce Bernhard for 11 years of dedicated 
service to the City and County of San Francisco and 
extending best wishes to him and his family for many 
years to come. 



VOTE: 



Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Makras, seconded by Hardeman, the 
following resolution was adopted: 

92-0099 UEB Commending Ronald E. Ciraulo on the occasion of his 
retirement for 33 years of dedicated service to the 
City and County of San Francisco and extending best 
wishes to him and his family for many years to come 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission. 



************************ 



Announcement 

President Chin announced that the Commission met in Executive 
Session on March 24, 1992 and approved settlement of Phyllis Brown 
v. CCSF, Superior Court No. 907-136; Jennie J. Smith v. CCSF, 
Superior Court No. 934-961; and Andrew Mitchell v. CCSF, Superior 
Court No. 934-961. 



***************** 



Resolution No. 92-0095 -- Approving Bardel, Inc. as substitute 
subcontractor to Transportation Displays, Inc. (TDI) for carding and 
posting activities on Municipal Railway vehicles. 



Mr. Thomas J. Elzey, Gener 
approval that Bardel, Inc. 
to TDI for carding and pos 
Railway. He explained tha 
the Commission asking for 
due to the poor performanc 
time, which was Carders an 
Bardel, Inc., as a new sta 
certification that was ori 
Office. Bardel, Inc. appe 
reviewing Bardel, Inc.'s a 
provisional one-year certi 
to be substituted as subco 
from Bardel, Inc. would be 
Office to evaluate and ins 
adhered to. 



al Manager of Public Utilities, reguested 

be accepted as substitute subcontractor 
ting advertising on the Municipal 
t on December 10, 1991, TDI came before 
substitution of their DBE subcontractor 
e of their current subcontractor at that 
d Posters, Inc. Mr. Elzey stated that 
rt-up business, submitted information for 
ginally denied by the Contract Compliance 
aled that decision. He stated that after 
ppeal, PUC granted Bardel, Inc. a 
fication, which would allow Bardel, Inc. 
ntractor at any time. Quarterly reports 

submitted to the Contract Compliance 
ure that the provisional certification is 



92-076 



Mr. Dan Valiao, President, Acres Consultanting Engineers, spoke on 
behalf of the Filipino Architects, Contractors and Engineers 
(FACE) . He urged the Commission to recommend to TDI that they use 
the PUC and the Human Rights Commission roster of available 
MBE/WBE's already certified to do this work and give a chance to 
local firms who are certified and who have experience and expertise 
to do this kind of work. 

Mr. Greg Roja, President, Filipino Architects, Contractors and 
Engineers, concurred with Mr. Dan Valiao's comments. He referred to 
the Municipal Railway's Transit Advertising Agreement dated January 
25, 1991 and pointed out a number of factors pertaining to whether a 
firm is a bonified DBE . He stated that one of the members of FACE 
is a bonified DBE and should be considered for this contract. 

Commissioner Makras asked whether TDI submitted other eligible names 
for consideration other than Bardel, Inc. Mr. Elzey replied that 
TDI only submitted Bardel, Inc. as their substitute subcontractor. 
He said that TDI communicated that they were not aware of any other 
firms that were available to do carding and posting services. 

Mr. Arnold Baker, Contract Compliance Officer, Public Utilities 
Commission, noted that the provisional certification process had 
never been used before, therefore, it would be necessary for the PUC 
to set up regulations in order to monitor the provisional 
certification on a quarterly basis. He said that all information 
received from Bardel, Inc. would be independently verified by staff. 

Commissioner Chin asked what the difference was between the 
contractor bringing in as part of their team a subcontractor and the 
substitution of a subcontractor. Mr. Baker responded that when a 
Request-f or-Proposals (RFP) is issued, the requirements for DBE 
participation are part of that RFP which must be addressed by the 
contractor. TDI designated Carders and Posters, Inc. as their DBE 
participant for carding and posting. He stated that if TDI wished 
to substitute their subcontractor, then they must seek the 
permission of the Commission. Also, he said that TDI must 
substitute a DBE subcontractor with another DBE subcontractor. Mr. 
Baker pointed out that while the PUC would be making the 
substitution, the Commission action would be in response to a 
request for substitution from TDI. 

Commissioner Jefferson stated that it seemed the only issue before 
the Commission was not who the substitute subcontractor was but 
whether or not the firm being proposed for substitution is a 
bonified DBE subcontracting firm. 

Commissioner Makras moved that the resolution be amended to delete 
the fourth paragraph which states that other viable alternative 
DBE ' s be submitted to the PUC for review. Commissioner Jefferson 
seconded . 

Commissioner Hardeman requested that he be allowed to abstain from 
voting on this item due to a conflict of interest. He said that he 
was advised by the City Attorney's Office to abstain from voting on 
this item because of his affiliation with the Sign Display & Allied 
Crafts Union, Local 510, who represents the employees that work for 
Bardel, Inc. Commissioner Jefferson moved to excuse Commissioner 
Hardeman from voting on this item. Commissioner Makras seconded. 
The motion was unanimously approved. 

On motion of Commissioner Jefferson, seconded by Commissioner Carson, 
Resolution No. 92-0095 was approved, as amended. 



************************ 



92-077 



Resolution No. 92-0097 — Authorizing the San Francisco Municipal 
Railway to extend the time of award for the Procurement and 
Installation of the Advanced Train Control System (MR-1034R) to 120 
days after receipt of bid and to enter into negotiations with 
Alcatel Canada, Inc.; and reguesting Board of Supervisors' approval. 

Mr. Thomas Sullivan, Chief Signal Engineer, Municipal Railway, 
stated that on February 24, 1992 proposals were received from two 
suppliers for the Procurement and Installation of the Advanced Train 
Control System. He said that a committee was formed to review the 
technical proposals for comformance with minimum requirements set by 
the Municipal Railway. The committee determined unanimously that 
Alcatel Canada, Inc. was the single qualified bidder for the project. 

Mr. Sullivan requested that an extension of time be approved to 
negotiate and identify additional funding sources because the price 
was greater than anticipated. Also, because this is a single 
qualified bid, the Federal Transportation Administration (FTA) has 
in place a set of rules and guidelines that must be followed in 
order to make sure that this is a fair price. 

Commissioner Makras asked why AEG Westinghouse did not qualify. Mr. 
Sullivan replied that the principal area in which AEG Westinghouse 
did not qualify was due to their inability to guarantee that there 
would not be any disruption in revenue operation. Also, he listed 
other areas in which they did not meet the minimum requirements set 
by the Municipal Railway. 

Commissioner Makras expressed concern over the fact that there was 
only one bidder that qualified for the project and that the price of 
the project was 30% over what was originally anticipated. Mr. Elzey 
pointed out that approval of an extension of time would allow time 
to verify whether or not staff's estimates were correct and follow 
the procedures established by the FTA to insure that the cost is 
appropriate . 

Commissioner Jefferson asked what the legal prohibition was against 
opening the price proposals. Ms. Robin Reitzes, Deputy City 
Attorney, City Attorney's Office, replied that only qualified 
bidders would get their price bid opened. She said it was the 
perrogative of the Municipal Railway to determine what constitutes a 
qualified bidder. Ms. Reitzes described how this contract was 
different than other contracts in that it involved a two-step 
process. The first step required that the proposals be 
pre-qualif ied and the proposals that were determined qualified to 
participate would have their price bids opened and the low bid would 
win. Second, there were 19 minimum requirements set by the 
Municipal Railway and in order to be qualified each bidder had to 
comply with every single one of the minimum requirements. Ms. 
Reitzes stated that these requirements were developed during the 
first bid process and were reaffirmed when the job went out to bid 
for the second time. 

Commissioner Makras was of the opinion that this type of progressive 
bidding excludes potential bidders from bidding and stated that the 
theory of the bidding process is to negotiate with as many people as 
possible and create the competition necessary in order to achieve 
the best price and the best product. Commissioner Makras remarked 
that he was troubled with the progressive bid opening of this 
contract, therefore, would not vote for the extension of time. He 
said that rather than requesting an extension of time, that staff 
review different options of rebidding the contract. 

On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, Resolution No. 92-0097 was approved. Commissioner Makras 
voted against the motion. 



************************ 



92-078 



Public Comments 

Mr. David Pilpel expressed his concerns regarding the Potrero 
Facility Rehabilitation project related to storage of Muni vehicles 
during the on-going construction of the facility. He suggested that 
that the 17th and Folsom Streets parking lot be utilized as a 
temporary satellite facility to alleviate some of the overcrowding 
conditions at the Potrero Facility during construction. Also, he 
commented on the importance of filling the 9148 Community Affairs 
position at the Municipal Railway. 

************************ 



THEREUPON THE MEETING WAS ADJOURNED: 4:10 P.M. 



Romaine A. Boldridge 
Secretary 



92-079 



n- 



MINUTES 



•^-PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

April 14, 1992 






COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-080 



Call to Order 2:40 P.M. 



Present: President Gordon Chin, Vice President Victor G. Makras, 

Commissioner James D. Jefferson, Commissioner Patricia A. 
Carson, Commissioner Michael E. Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the Minutes of the regular meeting of March 24, 1992 were 
approved . 

A tape of the meeting is on file in the office of the Secretary of 
the Public Utilities Commission. 



******************* 



RESOLUTION 
NO 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0100 GM Endorsing Board of Supervisors legislation regarding 
exporting reclaimed and recycled water. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0101 MR Reguesting the Controller to draw warrants in 
payment of claims against the San Francisco 
Municipal Railway, totalling $19,551.20 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0102 WD Awarding San Francisco Water Department Contract No. 
WD-2074, 8-Inch Ductile Iron Main Installation in 
Post Street between Gough and Scott Streets, in the 
net amount of $283,606 to Ranger Pipelines, Inc. and 
A. Ruiz Construction Company, AJV, San Francisco, CA . 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-081 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0103 WD Awarding San Francisco Water Department Contract No. 
WD-2079, 8-Inch Ductile Iron Main Installation in 
Rivera Street, 38th to 41st Avenues and various 
locations on Pacheco Street, and 35th, 37th, 39th, 
41st and 42nd Avenues, in the net amount of $239,290 
to P & M Pipelines and Coast-Geo Constructors, Inc., 
San Francisco, CA. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0104 WD Awarding San Francisco Water Department Contract No 
WD-2085, 8-Inch Ductile Iron Main Installation in 
Geary Street between Jones and Kearny Streets, in 
the net amount of $361,310 to Shaw Pipelines, Inc., 
San Francisco, CA. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0105 WD Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for Water Department Contract No. WD-2089, 12 and 8 
Inch Ductile Iron Main Installation in Powell Street 
between Lombard and Jefferson Streets and Mason 
Street between Lombard and Chestnut Streets. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0106 WD Awarding San Francisco Water Department Contract No. 
WD-2099, 8-Inch Ductile Iron Main Installation in 
Spruce Street, Euclid Avenue and other streets in 
Laurel Heights, in the net amount of $188,980 to 
Uniacke Construction, San Francisco, CA. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 

On motion of Carson, seconded by Makras, the 
following resolution was adopted: 

92-0107 HH Accepting the work performed under Hetch Hetchy 
Water and Power Contract No. HH-805R, Holm 
Powerhouse Slope Stabilization, approving Credit 
Contract Modification No. 1 in the amount of 
$50,404.15; authorizing assessing $1,000 in 
liguidated damages; and authorizing final payment of 
$13,198.24 to Valentine Corporation, Contractor. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-082 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0108 EC Requesting the Board of Supervisors to authorize the 
Bureau of Energy Conservation to apply for and 
accept free engineering and technical support 
services from the Energy Partnership Program of the 
California Energy Commission to conduct analysis on 
energy conservation projects in municipal facilities 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0109 WD Designating Tuesday, May 26, 1992 at 4:00 p.m., in 
Room 282, City Hall, San Francisco, CA, and 
Thursday, May 28, 1992 at 7:00 p.m., at the 
Southeast Community Facility, 1800 Oakdale Avenue, 
Community Meeting Room, San Francisco, CA, as the 
date, time and place for public hearings by the 
Public Utilities Commission for considering 
amendments to the Municipal Railway Fare Schedule. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0110 GM Commending Albina Arietta on the occasion of her 

retirement for over 21 years of dedicated service to 
the City and County of San Francisco and extending 
best wishes to her and her family for many years to 
come . 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0111 WD Authorizing the General Manager of the Water 
Department to request proposals, select and 
recommend a suitable consulting firm to provide the 
required services for the Environmental Impact 
Report related to the Hetch Hetchy Water Treatment 
Plant project. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-083 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0112 WD Authorizing the General Manager of the Water 

Department to negotiate and execute a 12-month 
Modification to the Memorandum-of -Understanding with 
the San Francisco Unified School District and the 
Public Utilities Commission Bureau of Energy 
Conservation for an amount not-to-exceed $45,000. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Makras, seconded by Hardeman, the 
following resolution was adopted: 

92-0113 WD Authorizing the General Manager of the Water 

Department to negotiate and execute the final 12 
months of the Agreement with Information and Support 
Services for an amount not-to-exceed $197,346 of 
which $185,346 shall be provided by the Water 
Department for provision of the continued 
development of a system-wide education package for 
grades K-12. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Makras, seconded by Hardeman, the 
following resolution was adopted: 

92-0114 MR Accepting the work performed under Municipal Railway 
Contract No. MR-1009R, Metro Subway System, Wet 
Standpipe System Repair and Certification; approving 
Debit Modification No. 3 in the amount of $5,005.34; 
approving an extension of time of 345 days; and 
authorizing final payment in the amount of 
$10,589.59 to Transbay Fire Protection, Contractor. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0115 MR Reallocating up to $150,000 from surplus funds 

available in the Municipal Railway's budget for the 
Bureau of Light, Heat & Power to Contractual 
Services to maintain the existing level of security 
services at the Municipal Railway's facilities. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 






92-084 



RESOLUTION 
NO 

On motion of Makras, seconded by Carson, the 
following resolution was adopted: 

92-0116 UEB Commending Mitsu Naito on the occasion of his 

retirement for 34 years of dedicated service to the 
City and County of San Francisco and extending best 
wishes to him and his family for many years to come 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the 
following resolution was adopted: 

92-0117 UEB Commending Lonnie Lawson on the occasion of his 

retirement for 29 years of dedicated service to the 
City and County of San Francisco and extending best 
wishes to him and his family for many years to come. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0118 UEB Authorizing the Utilities Engineering Bureau to 

reguest proposals, select and recommend a suitable 
consulting engineering firm to provide the required 
services for the future Hetch Hetchy Water Treatment 
Plant. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Makras, the 
following resolution was adopted: 

92-0119 UEB Approving modification to Municipal Railway Contract 
No. MR-881, No. 31 Balboa Electrification, in the 
amount of $194,958 to purchase special catenary 
equipment for the Muni Metro Turnaround project with 
Contractor, Abbett-Yick, A JV . 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0120 FM Adopting the 1992 Transit Legislative Program 
recommended by the General Manager of Public 
Utilities and directing the PUC staff and the City's 
advocates in Sacramento and Washington, D.C. to work 
towards implementing the program. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-085 



RESOLUTION 
NO 

On motion of Makras, seconded by Hardeman, the 
following resolution was adopted: 

92-0121 FM Authorizing the Assistant General Manager of Finance 
to apply for, accept and expend $43,662,589 from the 
San Francisco County Transportation Authority as 
part of the local match and seed money for various 
projects in the Municipal Railway's Capital 
Improvement Program and operations for 1992-93 - 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission . 



************************* 



New Business 

President Chin requested that the Commission be updated on the 
City's MBE/WBE ordinance through an informational presentation from 
the Human Rights Commission within the next two months. 



************************ 

Report of the General Manager 

Swipe Reader Demonstration 

Mr. Thomas J. Elzey, General Manager of Public Utilities, stated 
that staff was studying the use of swipe readers on Muni vehicles to 
both register the fares of passengers who use Fast Passes and verify 
whether the Fast Passes were counterfeit or not. Ms. Michelle N. 
Witt, Finance Director, Bureau of Finance, said that swipe readers 
have the capability of accumulating ridership information which is 
required under federal regulations. Mr. William Hooper, Vice 
President, Marketing and Contracts, Cubic Corporation gave a 
demonstration on how the swipe readers operate. He stated that the 
swipe readers have the capability of handling five different types 
of passes which could be recorded individually by type in the 
machine. He noted that the swipe reader machine is designed to read 
whether or not the various passes are counterfeit. Mr. Hooper said 
the machine would be able to use the current Muni Fast Pass, which 
has a magnetic strip, plus coins and bills. 

Commissioner Carson asked what the cost and life expectancy of the 
swipe readers were per bus. Mr. Hooper replied the cost was $680 
per bus with a life expectancy exceeding 10 years. 



92-086 



1992/93 Budget 

Mr. Elzey stated that consistent with the Mayor's request that there 
be a 10% reduction in Muni's 1992/93 budget, the Commission last 
month passed the proposed 1992/93 budget which included 
approximately $11.3 million in reductions which were achieved by 
Proposition A (early retirement) staff reductions, administrative 
efficiencies and a proposed fare increase. Since that time, a joint 
report was issued by the Controller, the Budget Analyst and the 
Mayor's Office which suggested that the 1992/93 budget deficit will 
be approximately $148 million. Staff received an indication from 
the Mayor's Office that Muni would have to review its budget again 
to address the possibility of coming up with additional adjustments 
in its budget. Mr. Elzey remarked that staff have already had the 
opportunity to discuss with the Mayor's Office preliminary budget 
adjustments within Muni's budget either in the fare structure and/or 
other areas. Mr. Elzey stated that staff would be engaging in 
further discussions' with the Mayor's Office and that he would come 
back to the Commission at the next meeting with more specific 
information regarding what the additional reductions to Muni's 
budget would be and what impact they would have on Muni's operations 
and fare structure. 

Commissioner Makras asked what type of reduction, in addition to the 
10% reduction already made, is the Mayor requesting. Mr. Elzey 
responded that it had been suggested that Muni would have to reduce 
their budget by an additional $20 million, which is approximately 
another 20% reduction. 

Commissioner Jefferson asked what our legal position was with 
respect to the impact this additional 20% reduction would have on 
Memorandums of Understanding (MOU) with the unions. Mr. George 
Krueger, Utilities General Counsel, replied that the MOU's are 
contracts which could be reopened for negotiation but said that 
would not prevent the Commission from doing what was necessary to 
balance the budget, proposing cuts in service, or implementing a 
fare increase. 

Mr. David Pilpel was of the opinion that this additional reduction 
to Muni's budget is far in excess of what Muni should have to take 
and such a proposal should be rejected. 

Ms. Linda Jofuku, representing Professional and Technical Engineers, 
Local 21, requested that management meet and confer on any proposals 
for furloughs of non-operating staff and proposed layoffs of Local 
21 and Local 790 employees. 

Muni's Incentive Programs 

Mr. Elzey said that staff has been reviewing potential passenger 
incentive programs which could improve ridership and the public 
image of Muni. He said that staff is reviewing an idea that has 
been implemented by the Southern California Rapid Transit District 
whereby passengers would be able to receive a refund on their fares 
if a vehicle did not meet their schedule. In addition, staff is 
studying preliminary data in relation to free ridership zones within 
Muni. Mr. Elzey stated that staff would report back to the 
Commission at the next meeting with a proposal concerning potential 
incentive programs for Muni. 



92-087 



Mayor's Fiscal Advisory Committee Report 

Mr. Elzey stated that the Mayor was presented with a preliminary 
report from the Fiscal Advisory Committee which is made up of 
private sector individuals. That report reviewed policy options 
such as methods to increase revenues, improve efficiency and 
proposals for cost containment on the Municipal Railway. He said 
that staff is reviewing the various policy options presented by the 
Fiscal Advisory Committee. 

Proposition A 

Mr. Elzey reported that approximately 1,359 retirees have left the 
City as a result of Proposition A (early retirement) and that number 
continues to change on a daily basis. Mr. Elzey said out of that 
number approximately 233 employees retired from the Muni, 30 retired 
from the Water Department, 21 retired from Hetch Hetchy and 41 
retired from the PUC Bureaus. He stated that the Water Department 
and Hetch Hetchy were exempted from having any of their positions 
left vacant and that they are currently in the process of 
backfilling those positions. With regard to Muni, 108 positions had 
been authorized to be backfilled, 70 of which are operators. He 
noted that there continues to be more operator positions that are 
vacant which reguire authorization for backfilling. It is uncertain 
at this point whether or not authorization would be granted to 
backfill all of the Muni operator positions. Mr. Elzey stated that 
he will keep the Commission informed on the status of those 
positions . 

Commissioner Makras asked why the number of retirees would change if 
there was a cut off date to retire. Ms. Andrea Gourdine, Manager, 
Personnel and Training, replied that the Retirement System had 
notified employees who retired earlier in FY 1991-92 that they could 
come back into the system and pay back any retirement payments given 
to them, thereby benefiting from Proposition A (early retirement). 

Water Rates for 1992-93 

Mr. Anson B. Moran, General Manager, Hetch Hetchy Water & Power, 
gave a brief presentation on the current water supply situation 
stating that year to date precipitation is about 66% of normal, 
storage is about 60% of normal and snow pack is about 60% of 
normal. Mr. Moran noted that the present water supply is very 
similar to that of last year's water supply, concluding that 
rationing should continue at the 25% level. 

Mr. John P. Mullane, General Manager, Water Department, recommended 
that the current mandatory 25% rationing program be continued with 
the same water use restrictions, the same excess use charges and the 
same level of mandatory conservation inspections that are currently 
underway for San Francisco residents. Mr. Mullane stated that the 
suburban resale customers would be allocated the same amount of 
water as last year. He pointed out that the rationing program in 
the suburbs has been so successful over the last two years that the 
water that has been banked is substantial and could have a 
significant impact on the total water supply situation. Mr. Mullane 
stated that staff was discussing that situation with the Bay Area 
Water Users Association (BAWUA) hopefully with the intent of 
limiting the bank and possibly even reducing it. 



92-088 



Mr. Mullane pointed out that last year the Commission expressed 
concerns about the equity of the rationing program as it related to 
San Francisco residents only and felt that adoption of a per capita 
program would be more equitable. At that time it was recommended 
that the department do a census of the residents of San Francisco 
and that no action for adoption take place until April of this 
year. Mr. Mullane stated that the data collected from the census 
had been completed resulting in total residential occupancy of 
approximately 828,000 people in San Francisco, which exceeded the 
1990 U.S. Census which states there are 724,000 residents in San 
Francisco. Mr. Mullane briefly discussed the various per capita 
alternatives and stated that a more detailed presentation regarding 
the issue of per capita rationing will be discussed at the April 28, 
1992 meeting. 

Ms. Christine Morioka, Rate Administrator, Water Department, stated 
that 90% of revenue's received from water rates pays for the 
department's expenditures. Ms. Morioka said that water revenues are 
collected from two classes of customers, wholesale and retail. 
Wholesale customers involve 30 customers throughout the peninsula 
and east bay and the retail customers are predominantly in San 
Francisco. She explained briefly how the rates are set with 
wholesale and retail customers. The calculations that determine 
those rates go through a cost of service methodology for setting the 
suburban rates and determining how much they owe us. Then, the 
balance needed to pay the department's expenses determines what the 
City rates will be. 

Clean Water Initiative 

Mr. Elzey stated the clean water initiative is currently in the form 
of legislation before the Board of Supervisors for the possible use 
of reclaimed water. He requested that the Commission endorse the 
legislation on the clean water initiative. 

Mr. Todd Cockburn, City Engineer, said that they have been working 
closely with PUC on wastewater reclamation within the City and 
wastewater reclamation in the form of an export program with other 
wastewater dischargers in the Bay Area. To reclaim wastewater in 
the Bay Area transport it to the San Joaquin Valley or to the Delta 
for various purposes would require a Joint Powers Agreement between 
San Francisco and other wastewater discharge agencies. This 
agreement would involve the Public Utilities Commission, Department 
of Public Works and all the other agencies. With the use of charts, 
he described the collection system and all the agencies that would 
be involved in this project. Approximately 400,000 acre feet of 
wastewater could be collected per year from the Bay Area and 
transported to the San Joaquin Valley. Mr. Cockburn stated before 
this legislation could go further, a Joint Powers Agreement would 
need to be formed because San Francisco could not carry such a 
project on its own. Mr. Elzey stated the issue before the 
Commission is not the Joint Powers Agreement but the actual 
legislation that has been presented to the Board of Supervisors that 
simply requests that the City Engineer and the PUC present a 
progress report regarding negotiation of an agreement and the 
progress of a study about the feasibility of carrying out such a 
project. Mr. Elzey recommended that the Commission endorse the 
legislation that is currently before the Board of Supervisors. 
Commissioner Hardeman moved to endorse the clean water initiative 
legislation. Commissioner Jefferson seconded. 



92-089 



Tuntex Corporation 

Commissioner Jefferson noted that Tuntex Corporation was a client of 
his and stated for the record that he would refrain from 
participating in Commission discussion concerning this item. 

Mr. Elzey stated that he had a meeting with Tuntex Corporation to 
present future Muni services and rail expansion projects. Because 
of certain developments sponsored by Tuntex Corporation, they were 
very supportive of any future rail expansion activities in 
connection with the Third Street Corridor. Mr. Elzey said that 
staff discussed the possibility of initiating some type of 
partnership which could be potentially beneficial to the City and 
the Municipal Railway. 

Joint Powers Board 

Mr. Elzey discussed the 1992-93 budget for the peninsula commute 
service and said that San Francisco's share of the subsidy was $1.5 
million. After staff negotiated with the Joint Powers Board (JPB), 
they agreed to increase funding from Caltrans, lower administrative 
costs and increase revenues, which brought our budget down to $1,299 
million. It was made very clear to the JPB that San Francisco was 
not in a position to have any additional increases in its budget. 
Mr. Elzey stated that Supervisor Hsieh, who is the Board of 
Supervisors' representative on the JPB, was going to take the 
initiative with the Board of Supervisors to add the additional 
amount of $350,000 as opposed to it coming out of Muni's budget. 



************************ 



Resolution No. 92-0111 -- Authorizing the General Manager of the 
Water Department to reguest proposals, select and recommend a 
suitable consulting firm to provide the reguired services for the 
Environmental Impact Report related to the Hetch Hetchy Water 
Treatment Plant project. 

Resolution No. 92-0118 -- Authorizing the Utilities Engineering 
Bureau to reguest proposals, select and recommend a suitable 
consulting engineering firm to provide the reguired services for the 
future Hetch Hetchy Water Treatment Plant. 

Mr. Steve Leonard, Project Manager, Water Department, reguested that 
the Commission approve reguest for proposals for work related to the 
Hetch Hetchy Water Treatment Plant project. 

Commissioner Makras asked how these items relate to the Hetch Hetchy 
filtration of water. Mr. Leonard replied that there are certain 
steps or milestones that must be met in order to be in compliance 
with the State to filter Hetch Hetchy water. Currently, a siting 
study is underway, which is the beginning of the environmental and 
conceptual engineering process. Both of these items will firm up 
the environmental and engineering issues, costs surrounding the 
project and are the basis for going to detailed design. They will 
be the support for a ballot measure to fund the entire project. Mr. 
Elzey pointed out that the Water Department budgeted $8 million for 
these projects in their 1992-93 Budget. 



92-090 



Commissioner Jefferson inquired if the engineering services were for 
the actual design of the filtration plant. Mr. Leonard responded 
that it is to develop a concept of a plant and plant system with 
preliminary drawings so that detailed design could proceed from that 
point. Commissioner Jefferson also asked questions surrounding what 
procedures would take place in selecting a firm to perform such 
work. Mr. Leonard replied that the department would advertise, have 
a selection committee that is approved by Contract Compliance, take 
in proposals, interview, and come back to the Commission with a 
recommended contractor for approval. Mr. Leonard stated that in 
addition to advertising in the local newspaper, there is a list of 
contractors that are routinely sent request-f or-proposals through 
the Contract Compliance Office. 

On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, Resolution Nos . 92-0111 and 92-0118 were approved. 



************************ 



Item No. 13 -- Authorizing the General Manager of the Water 
Department to negotiate and execute a professional services 
agreement with EDAW, Inc. at a cost not-to-exceed $330,000 for the 
development of comprehensive watershed management policy and plans. 

Item No. 14 -- Authorizing the General Manager of the Water 
Department to negotiate and execute a professional services 
agreement with Bookman-Edmonston at a cost not-to-exceed $250,000 
for the Water Resources Study of the Alameda Creek Watershed. 

Mr. Robert Vasconcellos , Manager, Water Department, explained that 
San Francisco has approximately 63,000 acres of watershed land which 
does not have general access to the public. The purpose of the 
watershed land is to produce water of the highest quality. In 
recent years, there has been public and political pressure to open 
up these watershed lands primarily for recreational purposes. Mr. 
Vasconcellos said that the overall goal of the planning studies is 
to develop policies that will guide the department in managing these 
land and water resources in future years and to balance the water 
supply and water quality needs, environmental concerns, revenue 
generation functions and recreational proposals. 

Commissioner Makras raised issues around the amount of money needed 
for these studies, the purpose of these studies and why these 
studies were needed. Mr. Vasconcellos replied that the primary 
purpose of these studies would be to give the department final 
overall policies on how to use the land. They would involve doing a 
preliminary environmental assessment of the watershed area in order 
to protect San Francisco's interests in these land and water 
resources. Mr. Elzey stated that these studies would give the 
department a backdrop against which the department could assess and 
evaluate the various proposals that are coming forth as developments 
and communities in those areas are steadily increasing. 

Commissioner Makras remarked that he was not prepared to vote for $2 
million worth of studies to determine whether or not the watershed 
land could be used for other purposes other than watershed. He 
stated that all options should be looked at in terms of what cannot 
be done with the watershed land. Commissioner Jefferson suggested 
that these items be held over to the next meeting to give the 
Commission more time to review just what is involved in these 
studies . 



************************ 



92-091 



Item No. 17 -- Presentation on segments of the Municipal Railway's 
1992-2001 Short Range Transit Plan. 

Mr. Phil Chin, Deputy General Manager, Municipal Railway, gave a 
presentation on the 1992-2001 Short Range Transit Plan. This plan 
is a mandated document that is reguired to be submitted by July of 
each year in draft form to the Metropolitan Transportation 
Commission (MTC) and the Federal Transit Administration (FTA) in 
order to meet their funding reguirements . Mr. Chin said that the 
Short Range Transit Plan could be a tool for a living, changing, 
interactive and evolutionary strategic planning process that fully 
involves members of the public. Mr. Chin outlined the proposed 
schedule of the Short Range Transit Plan and said that staff would 
be bringing segments of the plan before the Commission every two 
weeks providing them the opportunity to review each of the sections 
of the plan and discuss any changes to the plan before it is 
submitted to MTC in June. 

Mr. Pilpel remarked that this plan should be available to the 
communities for their review and input. 

Mr. Mike S. Cook, representing Automotive Machinists Union, Local 
1305, stated that the Short Range Transit Plan has direct and 
indirect impacts on members of the union. He reguested that all the 
unions that are actively involved with the plan be provided with a 
summary of the plan. 

************************ 



Resolution No. 92-0121 -- Authorizing the Assistant General Manager 
of Finance to apply for, accept and expend $43,662,589 from the San 
Francisco County Transportation Authority as part of the local match 
and seed money for various projects in the Municipal Railway's 
Capital Improvement Program and operations for 1992-93. 

Commissioner Makras asked whether there was a potential to hire 
peopole for various projects and fund them through the 
Transportation Authority. Ms. Michelle N. Witt, Finance Director, 
Bureau of Finance, replied that the San Francisco County 
Transportation Authority sets the criteria for what they will fund 
or not fund. President Chin reguested that staff prepare an 
analysis on what the San Francisco County Transportation Authority 
will fund. 



On motion of Commissioner Makras, seconded by Commissioner Hardeman, 
Resolution Nos. 92-0121 was approved. 



************************ 



92-092 



Public Comments 

Mr. Bobby Brown, President, Transport Workers Union, Local 250A, 
stated that Local 250A negotiated a contract with the City. He said 
they could not afford to give up anything that was negotiated in 
good faith with the City. Commissioner Jefferson responded that 
neither staff or this Commission had made any reference or proposal 
to opening up the MOU ' s . The questions raised were for purposes of 
clarification only relative to legal issues. 



************************ 



THEREUPON THE MEETING WAS ADJOURNED: 5:35 P.M, 



Romaine A. Boldridge 
Secretary 



92-093 



A 



MINUTES 



/ 

^PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

April 28, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and 
Construction Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



DOCUMENTS DEPT. 

12 
BAN FRANCISCO 



92-094 



Call to Order 2:15 P.M. 



Present: Vice President Victor G. Makras, Commissioner James D. 

Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 

Excused: President Gordon Chin 

Commissioner Makras presided as 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the Minutes of the regular meeting of April 14, 1992 were 
approved. 

A tape of the meeting is on file in the office of the Secretary of 
the Public Utilities Commission. 

******************* 



RESOLUTION 
NO 

On motion of Makras, seconded by Hardeman, the 
following resolution was adopted: 

92-0122 GM Commending Gordon Chin for his award winning efforts 
in finding solutions to the problem of homelessness . 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0123 GM Rejecting the concept of increasing the Municipal 
Railway fare to $1.25, as proposed by the Mayor. 

VOTE: Ayes - Makras, Jefferson, Carson 
Noes - Hardeman 

On motion of Makras, seconded by Jefferson, the 
following resolution was adopted: 

92-0124 GM Endorsing the concept of a pilot passenger incentive 
rebate program. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0125 WD Adopting continuation of the mandatory 25% water 

conservation program, including the continued use of 
excess use charges and various water use 
restrictions . 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



92-095 



RESOLUTION 
NO 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0126 WD Directing the Water Department to continue the same 
form of residential rationing currently in use. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Carson, the 
following resolution was adopted: 

92-0127 WD Adopting a revised Schedule of Rates for San 
Francisco and suburban retail customers. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Carson, the 
following resolution was adopted: 

92-0128 WD Adopting a revised Schedule of Rates for suburban 
wholesale customers. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0129 MR Requesting the Controller to draw warrants in 
payment of claims against the San Francisco 
Municipal Railway, totalling $37,500. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0130 WD Awarding San Francisco Water Department Contract No. 
WD-2102, 8-Inch Ductile Iron Main Installation in 
Eddy Street between Divisadero and Gough Streets, in 
the net amount of $352,240 to Ranger Pipelines, Inc. 
and A. Ruiz Construction Company, A JV , San 
Francisco, CA . 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Hardeman, the 
following resolution was adopted: 

92-0131 WD Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for Water Department Contract No. WD-2123, CDD 
Machine Shop Upgrade. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



92-096 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0132 WD Approving the plans and specifications as prepared 
and recommended by staff, and authorizing Bid Call 
for Water Department Contract No. WD-2136, Repaving 
of Street and Sidewalk Openings for the San 
Francisco Water Department for Fiscal Year Ending 
June 30, 1993. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0133 WD Authorizing the General Manager of Public Utilities 
to advertise for proposals to rehabilitate the 
Moccasin sewage treatment system. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0134 MR Approving Contract Modification No. 3 in the amount 
of $104,876 for San Francisco Municipal Railway 
Contract No. MR-869, Potrero Facility Rehabilitation 
to N. L. Barnes Construction, Company, Inc. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0135 PT Approving the Non-Civil Service and Temporary 
appointments and removals as indicated on the 
Temporary Employment Activity Roster, for the month 
of March, 1992. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0136 GM Approving contract amendment with the Planning 

Collaborative in the amount of $625,058 to complete 
Specific Plan work for the Water Department's lands 
in Pleasanton. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0137 WD Authorizing the General Manager of the Water 

Department to negotiate and execute a professional 
services agreement with EDAW, Inc. at a cost 
not-to-exceed $330,000 for the development of 
comprehensive watershed management policy and plans. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



92-097 



RESOLUTION 
NO 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0138 WD Authorizing the General Manager of the Water 

Department to negotiate and execute a professional 
services agreement with Bookman-Edmonston at a cost 
not-to-exceed $250,000 for the Water Resources Study 
of the Alameda Creek Watershed. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0139 WD Authorizing the General Manager of the Water 

Department to negotiate and execute a professional 
services contract with ARCUS for an amount 
not-to-exceed $50,000 to assist in developing 
strategic planning for computerized mapping/records 
operation . 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the 
following resolution was adopted: 

92-0140 HH Authorizing the General Manager of Public Utilities 
to enter into the Sixth Amendment to the Agreement 
with Grueneich, Ellison and Schneider, increasing 
their funding by $20,500, for a total not-to-exceed 
$1,310,500 to provide legal services for the purpose 
of identifying additional water supplies. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Carson, the 
following resolution was adopted: 

92-0141 HH Authorizing the General Manager of Hetch Hetchy 

Water and Power to negotiate and execute the Third 
Amendment to the Agreement with Bookman-Edmonston 
Engineering, increasing their funding by $36,500 for 
FY 1991-92 for hydrologic modeling consulting 
services . 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Carson, the 
following resolution was adopted: 

92-0142 HH Authorizing the Bureau of Light, Heat & Power to 
execute Modification No. 3 to the Agreement with 
Kingston-Cresci , AJV, for maintenance and repair of 
City-owned street lights; increasing the limit of 
payment from $1,749,153.84 to $2,521,154.84 through 
June 30, 1993; and extending the contract for twelve 
(12) months through June 30, 1993. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



92-098 



RESOLUTION 
NO 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0143 UEB Awarding San Francisco Municipal Railway Contract 

No. MR-894, Upper Market Street Transit Thoroughfare 
Project Phase 3 - Duboce Avenue to Castro Street - 
General Construction in the amount of $13,360,057 to 
Stacy and Witbeck, Inc., San Francisco, CA. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0144 EC Authorizing the Bureau of Energy Conservation to 
execute a professional services contract with 
Raymond Brooks Engineering for provision of 
engineering design services for upgrades to boiler 
plants in various city facilities on an as-needed 
basis . 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the 
following resolution was adopted: 

92-0145 BMIS Authorizing the General Manager of Public Utilities 
to enter into a personal services contract extension 
with Carlton and Associates and E. H. White and 
Company for an amount not-to-exceed $90,000 and a 
period of time not-to-exceed June 30, 1993 for the 
purpose of developing computerized maintenance 
systems for Hetch Hetchy and the Water Department. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



Copies of the above resolutions are on file in the 
office of the Secretary of the Public Utilities 
Commission . 



A************************ 



New Business 

Commissioner Carson stated that she would like to waive any salaries 
paid to her by serving on the Public Utilities Commission. 
Commissioners Makras, Jefferson and Hardeman stated that they also 
wished to forego any salaries paid to them. 

President Makras made a motion to commend Commissioner Chin for his 
efforts in addressing the issue of homelessness , who presently is in 
Washington, D.C. receiving the National Alliance Award for solutions 
to the problem of homelessness. Commissioner Hardeman moved and 
Commission Carson seconded in commending Commissioner Chin. The 
motion was unanimously approved. 

Commissioner Jefferson requested that staff calendar at a future 
meeting an overview of the Hetch Hetchy Filtration Plant Project. 



92-099 



President Makras requested that staff provide the Commission with a 
list of all City automobiles that are used by City employees 
detailing what their job description is and whether or not the 
vehicles are taken home. 

President Makras also requested staff to calendar for future 
discussion the following items: foregoing the purchase of any new 
automobiles in the coming fiscal year; the use of free passes for 
people using Muni other than City employees; a bi-weekly report on 
the use of overtime; and, detailed information on the terms of all 
leases on the Water Department's quarterly report. 



************************* 



Report of the General Manager 

1992/93 Budget 

Mr. Thomas J. Elzey, General Manager of Public Utilities, reported 
on the Mayor's proposed 1992-93 budget adjustments within Muni's 
budget. He stated that the Mayor indicated that he did not want to 
see any reduction in service. He proposed the following fare 
increases for the May 26th and May 28th public hearings: $1.00 - 
tokens; $1.25 - single fare; $35.00 - Fast Pass; 3 5<z! - youth single 
fare; $8.00 - youth Fast Pass; 25?! - senior single fare; $6.00 - 
senior Fast Pass; $3.00 - adult cable car fare. The Mayor's 
proposed fare structure is intended to raise approximately $15 
million in revenue. He said that staff is currently reviewing 
optional fare structures to increase revenues by approximately $13 - 
$15 million which would be discussed with the Mayor's Office and 
then be presented to the Commission prior to the public hearing. 

Commissioner Hardeman commented on the Mayor's position stating that 
the Mayor did not want to see any reduction in Muni service and that 
he wanted safe, on-time and graffiti-free buses. 

President Makras moved and Commissioner Jefferson seconded, to 
reject the Mayor's proposed increase of $1.25 and to direct that a 
letter be transmitted to the Mayor stating that the PUC had approved 
a fare increase of $1.00 and would not consider increasing the fare 
to $1.25. President Makras expressed that before considering an 
increase in the fare structure there were three elements that would 
need to be addressed, that are, cleaner buses, safer buses and 
on-time buses. Commissioner Carson modified the motion to include 
rejection of the $3.00 cable car fare increase. Commissioner 
Hardeman voted against the motion. The motion carried with a 3-1 
vote . 

President Makras invited public comments. 

Mr. Lawrence J. Martin, International Representative, Transport 
Workers Union, Local 250A, was of the opinion that transfers were 
the most abused element in the Muni fare structure. He suggested 
that transfers be reviewed as part of the proposed fare structure. 

Mr. David Pilpel spoke against the proposed $1.25 fare increase. He 
also spoke in opposition bus operators who are on special duty. 

Mr. Norman Rolfe, representing San Francisco Tomorrow, suggested 
that staff look at ways in which more passengers could be attracted 
to ride Muni before increasing fares. He also spoke in opposition 
to increasing the cable car fare. 



92-100 



Mr. Elzey stated staff would include the possibility of including a 
charge for transfers in its proposed fare structure and that staff 
would report at the next Commission meeting various issues related 
to the use of transfers, how they are currently handled, and ways of 
improving the transfer system. Mr. Elzey stated that staff will 
continue to look at other possible ways in balancing the budget. 

Transit Impact Development Fee 

Mr. Elzey stated that the department intends to use a one time 
credit of $2.5 million for increased capacity over the last 5 
years. Ms. Michelle N. Witt, Finance Director, Bureau of Finance, 
gave an updated report on the Transit Impact Development Fee 
(TIDF) . The TIDF was established by the Board of Supervisors to 
help Muni pay for increased ridership demand on transit service in 
the downtown area during peak periods. Currently, the amount 
collected in fee and interest earned on the fee $90 million to 
date. Of that $90 million, $20 million remains as unappropriated 
for both capital and operating purposes. Approximately, $2.5 
million a year in used for operating purposes for increased service 
in the downtown area. Ms. Witt described the various capital 
projects which are funded from TIDF funds. 

Passenger Incentive Rebate Program 

Mr. Elzey explained that the purpose of the passenger incentive 
rebate program would be to provide Muni passengers with an on-time 
guarantee of service. This conceptual program would provide fare 
rebates (tokens) that would be available for passengers who 
experience delays in Muni service exceeding 15 minutes from 
published scheduled service. Mr. Elzey stated that the timeframe 
for such a pilot program would not exceed 6 months with a total cost 
not-to-exceed $50,000. He said that staff would propose to develop 
a specific program identifing various procedures, marketing and 
various lines affected resulting from such a program. A report on 
the program would be presented to the Commission at its public 
hearing scheduled for May 26th and May 28th. Mr. Elzey requested 
that the Commission endorse the concept of such a program at this 
time. President Makras moved and Commissioner Jefferson seconded to 
endorse Muni's on-time incentive program. The motion was 
unanimously approve. 

31-BALBOA Line 

Mr. Johnny B. Stein, General Manager, Municipal Railway, stated that 
in 1983 Muni began its trolley coach expansion program to change the 
mode of operation on certain lines from diesel buses to electrical 
trolley coaches. When construction started in 1990 on the 31-BALBOA 
line, staff did not work into its plan accessible wheelchair trolley 
coaches . 

Mr. Stein said that last year negotiations began with Seattle to 
lease at least 18 retrofitted trolley coaches for the 31-BALBOA line 
which would begin operation June 20, 1992. At this time, Seattle is 
reconsidering leasing those trolley coaches because they have 
received monies to expand their trolley services. Mr. Stein said 
that staff would like to start trolley service on the 31-BALBOA line 
on June 20, 1992 but will not have any accessible trolley coaches at 
that time. He stated that he will be meeting with the Elderly and 
Handicapped Advisory Committee concerning this issue and report back 
to the Commission at its next Commission meeting. 

Mr. Pilpel expressed his disappointment regarding the possible delay 
in providing accessible trolley coach service on the 31-BALBOA line. 



92-101 



Public Comment 

Mr. James Bryant, representing Local 790, presented a flyer to the 
Commission which listed concerns of station agents in the Muni Metro 
Subway regarding safety and accessibility. 

Mr. Jano Oscherwitz, representing Local 790, stated that the 
American Disability Act stipulates that the Muni Subway Stations 
should be accessible both to seniors and disabled passengers and 
urged the Commission to address this problem. 



************************* 



Public Hearing 

Resolution No. 92-0125 — Adopting continuation of the mandatory 25% 
water conservation program, including the continued use of excess 
use charges and various water use restrictions. 

Resolution No. 92-0126 -- Directing the Water Department to continue 
the same form of residential rationing currently in use. 

Mr. John P. Mullane, General Manager, Water Department, stated that 
since the current water supply is comparable to last year, staff is 
recommending that the current mandatory 25% rationing program be 
continued. Mr. Mullane stated that all the elements of the program 
would remain the same as last year for San Francisco residents, 
which include: water use restrictions; excess use charges; 
mandatory conservation inspections; allocations for new accounts 
based on a per capita basis. The annual allocation of water 
allocated to the suburban resale customers would be based on the 
same inside/outside formula as last year. Banking provisions for 
suburban resale customers would also remain the same. 

Mr. Mullane briefly discussed the various per capita alternatives 
stating that there were three basic types of per capita programs: 
1) per capita - 56 gallons per day (gpd) - per occupant; 2) per 
household - 156 gpd per household; and, 3) per capita or per 
household plus irrigation - 50 gpd per occupant or 132 gpd per 
household, plus irrigation as per the irrigation schedule. Mr. 
Mullane said that if the Commission decides to take action in 
adopting a per capita program, that the Department recommends that 
the Commission adopt the per capita plus irrigation water 
methodology because it would be a more equitable program. 

President Makras opened the meeting for public comments. 

Mr. Harold Wright spoke in favor of continuing the current 25% 
rationing program. 

Ms. Elizabeth Martin, Executive Director, San Francisco Beautiful, 
spoke in favor of the per capita plus irrigation program. 

Mr. Douglass J. Engmann, representing himself, spoke in support of 

the continuation of the 25% water rationing program. He expressed 

his opinion that the Commission should take a longer term look as to 

how water is priced and allocated in San Francisco. 



92-102 



A public speaker read Ms. Isabel Wade's comments supporting the 
continuation of a water conservation measure as long as the formula 
allocates water for private and public landscaping. 

Mr. James Beard, President, Bay Area Water Users Association 
(BAWUA), spoke in support of San Francisco Water Department's 
recommendation to continue rationing at the 25% level and the 
Department's water rate increase of 18.6% for suburban wholesale 
customers . 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, Resolution No. 92-0125 was approved continuing the 
mandatory water conservation program at the 25% level. 

On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, Resolution No. 92-0126 was approved continuing the same 
form of residential rationing as currently in use. 



************************* 



Public Hearing 

Resolution No. 92-0127 -- Adopting a revised Schedule of Rates for 
San Francisco and suburban retail customers. 

Resolution No. 92-0128 -- Adopting a revised Schedule of Rates for 
suburban wholesale customers. 



Mr. Mullane summarized the water rate increases for both the 
suburban retail and suburban wholesale customers with the use of 
charts. He stated that the water rates for San Francisco's retail 
customers in and outside of San Francisco would decrease by 4.6%. 
In 1990, the Public Utilities Commission adopted a 14% rate increase 
for San Francisco's retail customers in and outside the City. Staff 
is recommending at this time to eliminate the water purchase 
surcharge which would decrease the base cost of each billing union 
(748 gallons of water) from $.94 to $.897. Mr. Mullane said there 
were two other changes that would impact retail rates which are: 1) 
to establish a check return charge to allow the department to 
recover costs for checks returned due to insufficient funds; and 2) 
to make municipal accounts, that are exempt from payment of water 
charges, subject to payment of excess use fees when exceeding their 
al lotment . 

Mr. Mullane stated that suburban wholesale customers will continue 
to pay their proportional share of operating costs. Their rate 
increase is 18.6% above the current rates for 1991/92. The unit 
charge will increase from $317.99 per acre foot to $378.97 per acre 
foot. These rates are in accordance with the Master Sales Contract. 

Commissioner Makras asked why the water rates have increased by 18% 
versus last year. Mr. Mullane replied this increase was necessary 
in order to cover costs associated with achieving parity with salary 
standardization and to cover costs associated with the Hetch Hetchy 
Filtration Plant. 

On motion of Commissioner Jefferson, seconded by Commissioner 
Carson, Resolution Nos. 92-0127 and 92-0128 were approved. 

************************* 



92-103 



Resolution No. 92-0137 -- Authorizing the General Manager of the 
Water Department to negotiate and execute a professional services 
agreement with EDAW, Inc. at a cost not-to-exceed $330,000 for the 
development of comprehensive watershed management policy and plans. 
(Continued from the April 14, 1992 meeting) 

Resolution No. 92-0138 — Authorizing the General Manager of the 
Water Department to negotiate and execute a professional services 
agreement with Bookman-Edmonston at a cost not-to-exceed $250,000 
for the Water Resources Study of the Alameda Creek Watershed. 
(Continued from the April 14, 1992 meeting) 

Mr. Mullane stated that staff had reviewed both of these items at 
the request of the Commission at the last meeting. With the use of 
charts, Mr. Mullane explained that the Water Department owns and 
manages 63,000 acres of watershed land in Alameda, Santa Clara, and 
San Mateo Counties.' Mr. Mullane said there were several different 
reasons why these studies were vital to the protection of San 
Francisco's interests in these land and water resources. He briefly 
highlighted eight elements, which include: 1) water quality 
protection; 2) fire protection; 3) protection of water rights; 4) 
water system construction and operations; 5) revenue generation; 6) 
environmental requirements; 7) recreational opportunities; and 8) 
State mandated planning. The entire program cost is approximately 
$2.2 million over a period of 4-1/2 years. Mr. Mullane requested 
approval to continue with the first phase of the Watershed 
Management Planning Study and Alameda Creek Water Resources Study. 

Mr. Pilpel spoke on behalf of the Sierra Club expressing their 
support to conduct these studies and examine the needs of the 
watershed, lands . 

Mr. Jacob Sigg, President, Yerba Buena Chapter of California Native 
Plant Society, spoke in support of a comprehensive watershed 
management plan in order to make wise choices related to watershed 
lands . 

Mr. Arthur Feinstein, Conservation Chair, Golden Gate Society, spoke 
in support of a watershed planning study and urged the Commission to 
make sure the subcontractors selected for this project are qualified, 

On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, Resolution Nos. 92-0137 and 92-0138 were approved. 






Item No. 18 -- Presentation of Chapter 3 and hearing comments on 
Chapters 1 and 2 of the draft Municipal Railway 1992-2001 Short 
Range Transit Plan. 

Commissioner Jefferson inquired why safety issues with reference to 
security were not included in Chapter 2 under Goals and Objectives. 
Mr. Phil Chin, Deputy General Manager, Municipal Railway, replied 
that security has been a major concern of Muni and that staff would 
look at some way of establishing a measure of safety. 

President Makras commented on issues surrounding the Mission Bay 
project in connection with transit and stated that a more regional 
approach should be included in the Short Range Transit Plan. 
President Makras also said that graffiti and a rate policy for Muni 
should be emphasized in the plan. 



92-104 



Mr. Phil Chin stated that Chapter 3 is the operating plan for the 
Short Range Transit Plan. He said that Chapter 3 provides the 
framework through which service is delivered and spells out the 
functional activities and measures used to see that service is 
provided. Chapter 3 also focuses on accessible services, regional 
travel and public information. 

Mr. Pilpel commented on Chapters 1 and 2 of the Short Range Transit 
Plan in relation to incorporating increased ridership as a goal, 
developing new revenue sources to meet increasing demands in the 
face of budgetary constraints. 



******************** 



Item No. 19 -- Authorizing the San Francisco Municipal Railway to 
modify the contract with PGH Wong Engineering by extending the term 
of the contract to June 30, 1994 and increasing the contract amount 
by $215,304 to a total of $371,598 for Phase II work on the PCC 
Streetcar Restoration Project. 

Item No. 20 -- Authorizing the San Francisco Municipal Railway to 
enter into a contract with Morrison Knudsen Corporation for an 
amount not-to-exceed $8,047,450 for the restoration of 14 PCC 
Streetcars as defined by the specifications that accompany the 
contractual agreement. 

Mr. Chin explained that modification to the contract with PGH Wong 
Engineering is for the procurement support services for the PCC 
Rehabilitation Program to monitor and manage the actual 
remanuf acturing of the cars, to conduct inspections on site, to 
assure quality control and to manage the acceptance of the 
vehicles. Its companion item is to authorize the award of the 
contract to Morr ison-Knudsen for the remanuf acture of 14 PCC cars. 

Commissioner Jefferson asked why this work could not be done 
in-house. Mr. Chin replied that Muni does not have the staff 
capability at this point to perform such work. 

Commissioner Carson inquired as to the price of a new PCC car and 
the life expectancy of each vehicle. Mr. Chin replied that PCC cars 
were no longer being manufactured, therefore, the cost to 
rehabilitate each PCC car would be approximately $550,000 with a 
life expectancy of 20 years. 

Commissioner Jefferson asked how much money comes from federal 
sources and local sources for this project. Mr. Chin replied this 
project is primarily federally funded. 

President Makras asked what the total cost of the project would be. 
Mr. Chin replied that from what staff knows of the cars, it is very 
unlikely that they would cost more than $550,000 each. He said that 
it was possible that future costs could be added to the contract for 
the installation of wheelchair lifts. Mr. Chin stated that a 
decision has not been made as to whether or not there would be lifts 
versus wayside lifts. President Makras stated that he was not 
opposed to the rehabilitation of the PCC cars but that he was not 
prepared to vote on these items until staff has prepared an amended 
package with a master plan on exactly what will be negotiated before 
entering into a contract. Commissioner Hardeman moved to table 
these items. 



*********************** 



92-105 



Item No. 23 -- Authorizing the General Manager of the Water 
Department to execute Amendment No. 3 for Professional Services 
Agreement with Camp Dresser and McKee, Inc. in an amount 
not-to-exceed $2,863,475 for water quality planning studies; and 
requesting the Controller to transfer funds. 

Mr. Fonda Davidis, Project Manager, Utilities Engineering Bureau, 
explained that the Water Department entered into a contract with 
Camp Dresser and McKee, Inc. in 1989 to perform water quality- 
planning studies. He stated that this is the final phase of water 
quality planning studies and that under this phase of the work, Camp 
Dresser and McKee, Inc. will perform pilot, bench and plant scale 
studies on the City's Hetch Hetchy and Alameda sources. He stated 
that this work constitutes an integral step in the City's effort to 
comply with the State mandated compliance order regarding the 
surface water treatment rules. 

Mr. Elzey noted that this was a portion of background information 
surrounding the Hetch Hetchy Filtration Plant project requested by 
the Commission. Commissioner Jefferson inquired as to the 
relationship between this study and the filtration plant. Mr. 
Davidis replied that these studies would actually develop the design 
criteria for the Hetch Hetchy Filtration Plant and provide the 
design criteria for necessary improvements to the Sunol Water 
Treatment Plant. 

President Makras expressed that he did not feel comfortable with 
going forward with this package because he did not have an overall 
picture on the course of action that is needed to complete such an 
expensive project. 

Mr. Elzey stated that it was necessary to move forward with this 
project. He said that the design criteria that would result from 
these studies were necessary before the actual design and 
construction could begin on the Hetch Hetchy Filtration Plant itself 

Commissioner Jefferson requested staff to brief the Commission on an 
overall comprehensive presentation on all phases and components of 
the plan so that the Commission could see the big picture. 

Commissioner Carson asked what the timeframe was for coming into 
compliance with the State law. Mr. Steve Leonard, Project Manager, 
Water Department, replied that the Department must be in compliance 
with the drinking water rules by January 1, 1999. The short-term 
objective for funding this project would be in November 1994. Mr. 
Leonard stated that a commitment had been made to have an 
engineering study and an environmental study complete by November, 
1994 so that if the Commission does decide to go forward with 
issuing bonds to fund the project, all the necessary information 
would be completed. 

Commissioner Hardeman moved to approve this item. Commissioner 
Jefferson seconded. The motion failed by a 2-2 vote with President 
Makras and Commissioner Carson voting against the motion. 



************************ 



Public Comments 

Mr. Pilpel expressed his displeasure towards the community for 
cancelling the meeting scheduled by Muni regarding the 19th Avenue 
project . 

Commissioner Carson inquired about the Geary Paper Division. 



92-106 



Mr. Stein replied that Muni has 1,833 full-time operator positions. 
He stated that the Memorandum of Understanding (MOU) with the union 
stipulates that 1,780 operating drivers must be on board and ready 
to go at all times. That leaves a balance of 53 positions which is 
referred to as Muni's Paper Division. That includes industrial 
injuries, long-term illnesses, long-term jury duty, military leave, 
etc . 



******:*:•:*:********:****::**:*: 



THEREUPON THE MEETING WAS ADJOURNED: 6:25 P.M. 



Romaine A. Boldridge 
Secretary 



92-] 7 



MINUTES 



MAIN PUBLIC LIBRARY 
Government Documents 
CivicT Center - 1st Floe 



// 



cfL 



PUBLIC UTELITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 
2:00 P.M. 
1992 



# yl2 ' 



COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



M 3 1992 

SAw PRA«4C . 
PUBLIC LIBRARY 



92-108 



Call to Order 2: 15 P.M. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner Michael 
E. Hardeman 



On motion of Commissioner Jefferson, seconded by Commissioner Carson, the Minutes 
of the regular meeting of April 28, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO 

On motion of Jefferson, seconded by Makras, the following resolution 
was adopted in Executive Session: 

92-0146 GM Authorizing legal counsel to file a response to the Districts' filing to the 
Federal Energy Regulatory Commission. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0147 WD Approving the plans and specifications as prepared and recommended 
by staff, and authorizing Bid Call for Water Department Contract No. 
WD-2064, 36-Inch Steel Main Installation in Dolores Street between 
San Jose and 25th Streets, 25th Street between Dolores and Sanchez 
Street between 25th and 22nd Streets, and 22nd Street between Sanchez 
and Castro Streets. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0148 HH Accepting the work performed under Hetch Hetchy Water and Power 
Contract No. HH-831, Moccasin Powerhouse Interior Repair and 
Painting; approving Debit Contract Modification No. 2 in the amount of 
$1,062.47; and authorizing final payment in the amount of $4,369.62 to 
River City Painting, Inc., Contractor. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-109 



RESOLUTION 
NO 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 



92-0149 MR Awarding San Francisco Municipal Railway Contract No. MR-1039-R, 
Curtis E. Green Light Rail Facility Geneva Site - Maintenance Building 
Paint Booth Fans, in the net amount of $43,450 to E. Mitchell, Inc., San 
Francisco, CA. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Makras, seconded by Hardeman, the following resolution 
was adopted: 

92-0150 HH Approving the proposed organizational changes in Hetch Hetchy Water 
& Power as a result of vacancies created by Proposition A (early 
retirement); and directing the PUC to submit to the Mayor and Board of 
Supervisors budget changes necessary to implement the proposal. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Makras, the following resolution 
was adopted: 

92-0151 MR Awarding San Francisco Municipal Railway Contract No. MR-1035-R, 
Kirkland Motor Coach Facility - Security Fencing & Gates, in the net 
amount of $387,000 to Angotti & Reilly/T. E. Joo, AJV, San Francisco, 
CA. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0152 MR Requesting the Board of Supervisors' approval to contract for the 
provision of paratransit services for Fiscal Year 1992-93. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Makras, the following resolution 
was adopted: 

92-0153 UEB Awarding Hetch Hetchy Water and Power Contract No. HH-829-R, 
O'Shaughnessy Septic System Rehabilitation Phase II, in the net 
amount of $167,374 to San Luis Construction, San Francisco, CA. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



92-110 



RESOLUTION 

NO 



92-0154 UEB 



On motion of Jefferson, seconded by Carson, the following resolution 
was adopted: 

Approving the use of a pass-fail prequalification process to screen 
suitable contractors to submit price bids on the Muni Metro Turnaround 
construction contract. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0155 FM Authorizing the Director of Finance to apply for, accept, and expend 
$28,814,387 from 1991-92 State of California Proposition 1 16, Clean 
Air and Transportation Improvement Act funds and $28,814,387 from 
such regional and local matching fund sources as State Transit 
Assistance funds, Transportation Development Act, AB 1 107 funds, 
Bridge Toll Revenues, Transit Impact Development Fees, 
Transportation Sales Tax Revenues, Hetch Hetchy funds, and/or the 
San Francisco Municipal Railway Improvement Corporation funds for 
the following Municipal Railway capital projects: Articulated Trolley 
Coach Replacement; Muni Metro Turnback; Potrero Division 
Rehabilitation; Geneva/Green Capacity Modification; Miscellaneous 
Rail Maintenance and Repair Equipment Acquisition; Subway Signal 
System Replacement; Muni Metro Extension to Sixth Street; 
F-MARKET/EMBARCADERO PCC Streetcar Rehabilitation; and Rail 
Replacement. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, 
Hardeman 



Copies of the above resolutions are on file in the office of the Secretary 
of the Public Utilities Commission. 






Announcement 

President Chin announced that the Commission met in executive session prior to this 
meeting and delegated authority to staff to proceed with reference to Federal Energy 
Regulatory Commission Project No. 2299. 

Old Business 

Graffiti 

Commissioner Makras requested that staff explore the use of Transit Impact Development 
Fee (TIDF) funds for graffiti cleanup and report back to the Commission. He also 
requested that staff look at different methods of graffiti cleanup, such as, painting over it. 
He asked for information on the level of staffing needed to carryout a cleanup program. 

Mr. George Krueger, Utilities General Counsel, noted that there are guidelines for use of 
TIDF funds, one being that the use must relate to service in the downtown corridor. 



92-111 



Transfers 

In response to questions from the Commission, Mr. Thomas J. Elzey, General Manager of 
Public Utilities, stated that the Transport Workers Union had raised concerns about the 
potential of charging for transfers and security of transfers. He said that staff is reviewing 
both the management of the transfer system and the issue of attaching a value to transfers 
and will report to the Commission in conjunction with the public hearing on fares. 

Commissioner Jefferson stated that he was concerned about the number of automobiles 
which employees take home overnight and wanted to discuss the issue at a subsequent 
meeting. 






New Business 

Commendation 

Commissioner Hardeman asked that staff recognize the efforts made by Municipal 
Railway drivers and supervisors who continued to provide service to the public during the 
period of demonstrations and curfew following the verdict in the Los Angeles Police 
Department brutality case. 

Citizens Group 

President Chin requested that staff outline various options for forming a citizens advisory 
committee for input on Municipal Railway issues and report to the Commission within 
one month. 






Report of the General Manager 

Update on FY 1992/93 Budget 

Ms. Michelle Witt, Assistant General Manager, Finance, reviewed the budget process to 
date. The budget adopted by the Commission in February, 1992, meet the Mayor's 
request for a 10% reduction in general fund support, which was equal to $1 1.6 million. 
This assumed that the Commissin would adopt a fare increase totalling $4.3 million. 
Since that time, the Mayor has raised the amount the budget must be reduced to $30 
million. Staff identified potential reductions through increasing savings from the early 
retirement program, transferring propulsion power to Hetch Hetchy, taking a one time 
credit from the Transit Impact Development Fee for past service increases, and additional 
administrative efficiencies. We are still short $11 million. 

Mr. Elzey stated that to address the shortfall, staff developed several fare options above 
the $4.3 million package for the Commission's consideration at the fare hearing. 

In response to questions from the Commission, Ms. Witt stated that if the Commission did 
not approve a package sufficient to meet the Mayor's request, that the Mayor could 
increase Salary Savings by the needed amount, causing the Controller to stop certifying 
salary expenses within the department which would result in personnel layoffs and service 
cuts. 

Mr. Elzey stated that there had been a request from the Mayor's Office for an additional 
$6 million contribution from Hetch Hetchy to the general fund. The budget adopted by 
the Commission provided for a $10 million contribution. Through staff discussions with 
the Mayor's Office, we agreed to try to cover part of Muni's shortfall by absorbing an 
additional $2.8 million for propulsion power, and to contribute $5 million more for the 
general fund because we believed the runoff would be sufficient to handle it. Now, an 
additional $6 million has been requested. 



92-112 



Mr. Anson Moran, General Manager Hetch Hetchy Water and Power, stated that the only 
way the department could come up with $6 million is through deobligation of capital 
projects which would reduce the departments cash reserve and its ability to deal with a 
dire water contingency from its own resources. This would place the general fund at risk 
for a comparable amount of money. 

Mr. Lawrence Martin, International Representative Transport Workers Union, requested 
that staff accompany the union and meet with the Mayor's Office regarding requisitions 
for drivers. 

Mr. David Pilpel questioned the content of the fare hearing. Mr. Elzey replied that the 
scope of the hearing will include all the options outlined in the staff report which was 
released to the public April 29, 1992. 

Item No. 9 — Authorizing the General Manager of the Water Department to execute 
Amendment No. 3 for Professional Services Agreement with Camp Dresser and McKee, 
Inc. in an amount not-to-exceed $2,863,475 for water quality planning studies; and 
requesting the Controller to transfer funds. (Continued to the meeting of May 26, 1992.) 

Mr. John P. Mullane, General Manager, Water Department, explained that the item before 
the Commission is the amendment of an existing contract with Camp Dresser and McKee, 
Inc. for an increased level of services related to the water quality planning studies. The 
item was calendared previously and the Commission expressed certain concerns which he 
said he would try and answer today. 

Since the 1960's there has been a steady increase in scientific knowledge and in 
regulations that demanded an increase in water treatment. Between 1966 and 1982 the 
Water Department built two treatment facilities that basically filter all locally gathered 
water. Hetch Hetchy water was not filtered. By the end of this fiscal year, one of those 
plants will have been expanded in capacity and we will continue to filter all the locally 
collected water. The Hetchy water is still unfiltered. Back in 1974 the original Safe 
Drinking Water Act was passed. Amendments were also passed in 1979 and 1986. From 
1986 forward, the Department has taken two parallel tracks on the issue of filtration. One 
dealing with the regulatory body and sister utilities to attempt to keep the Department's 
options open relative to filtration. The second, premised on the assumption that if we are 
not successful that we would have to filter, has allowed us to move forward with the 
gathering of data necessary to actually develop a filtration plant. 

Mr. Mullane said that the surface water treatment rule, which was proposed in 1986 at the 
federal level with the EPA, basically stipulated that all surface water supplies in 
California would have to be filtered to a standard equal to conventional treatment, that 
means filtration, which means removing microbiological contaminents from the surface 
water supply. Tn 1987, staff worked with various utilities and the federal EPA to attempt 
to sculpt or write the proposed regulations in such a way to allow for an exemption in 
filtration, which at this point is allowed by the federal EPA. In 1987 through 1990, the 
department participated with a joint AWWA-State Department of Health Services AdHoc 
Committee to further work on those standards. Ultimately the department was 
unsuccessful in gaining the exemption at the State level. Mr. Mullane stated that the State 
Department of Health has taken primacy on this issue which means they have the power 
to administer the regulations and in effect to develop more stringent regulations should 
they desire. In 1990 the surface water treatment rule was finally adopted by the State 
Department of Health. At that time the PUC General Manager instructed the Water 
Department basically to go for it, meaning we are going to have to filter so let us get the 
data on line to demonstrate what we are going to have to do, where we are going to do it , 
what is it going to cost us, what the direction of the department will be. 



92-113 



During that same period of time, the department (in 1987) implemented the first phase of 
the water quality planning study. Three phases have been completed to date. The most 
recent being the Hetch Hetchy Siting Study which was presented to the Commission in 
the latter part of last year. That particular phase of the study looked at a number of 
options as to where the plant could be placed and gave us such things as both construction 
and operation of maintenance costs, operationally reliability both present and future, the 
adaptability of the various sites to treating water sources other than Hetchy and a schedule 
for implementation with compliance. He said that brings us to September of 1991 when 
the State Department of Health issued a compliance letter to the Water Department which 
said basically that we have to filter by July 1993. The State requested us to respond by 
February 1992 telling them that we have an intent to filter, that we have a schedule for 
compliance and that we have a financing plan. That letter was submitted on the last day 
of February 1992 after securing approval and sign off by this Commission to the State 
with a plan. That gets us to a point where the State has signed off on that Compliance 
letter not only for the City of San Francisco but for the 30 water districts that purchase 
water from the San Francisco Water Department on a wholesale basis to retail to its 
customers within their perspective districts. The theory is basically they are piggy back 
on the Water Department as long as we are in compliance, they are in compliance. Once 
we are out of compliance, they are out of compliance. That gets us to a point where we 
presented the Commission a number of options. The 5th option was to enter a compliance 
agreement and go out and build a filtration plant and be in compliance by 1999. That gets 
us to a point where we are today. 

We have had three elements before the Commission during the last three months. Some 
of the elements were actually acted upon in one form at a earlier stage by prior 
Commissions. Those three elements are: 1) having an Environmental Impact Report 
completed; 2) completing a conceptual engineering review; and, 3) the phase four 
modification to the water quality plan which is the item before you. Those three items are 
tied together. The lynchpin to the whole thing is the phase four item that is before you 
today. If we gather the data and the data is so significantly different than we anticipated 
and we think we have an opportunity for legislative relief, we must have that data on the 
table to deal with the State Department of Health and EPA. The contract modification is 
going to provide us with various testings, the results of the tests, interpretations of the 
results, and the development of recommendations which will be used in whatever final 
mode we find ourselves. The flow chart shows the interrelationship between these three 
items and how all three would have to be completed in mid- 1994 so that staff could come 
back to this Commission and seek your review of where we are and your approval to go 
forward with a bond request to the Board of Supervisors and ultimately to the electorate 
to fund the project. 

One aspect of this amendment is that it is a $2.8 million project of which over $1 million 
has been designated for MBE/WBE participation. At the last meeting, the Commission 
raised three concerns. First, the potential financial risk that may be perceived for the City 
ratepayers in an overall project of this magnitude. We have already reopened negotiations 
with the Bay Area Water Users Association (BAWUA) to develop a plan that is basically 
pay-as-you-go for them as well as for the City ratepayers. Now, any bond issue or any 
capital improvement project that is approved within the budget process by this 
Commission, the Mayor, and the Board of Supervisors, ultimately says that the City 
ratepayers pay the front end costs and we only recoup those costs associated with the 
suburban customers at the time the project is complete, and we can capitalize it. These 
negotiations would guarantee that that method basically goes out the window and that 
they would participate in the same way that the City ratepayers pay. On the same issue of 
risk the questions was raised about what happens if down the road after we have 
committed to this and spent money, one of the thirty water districts says "Hey I want to 
back out - 1 found another supply". More than two thirds of our customers depend 100% 
on the Water Department and while it is not inconceivable, it is highly unlikely that they 
would be able to find another source to replace our supply. If that did occur, we would 
have already allocated the cost - basically one third to the City ratepayers and two-thirds 
to the suburban ratepayers. If somebody bowed out that pie would not be redivided 
between them and the City - it would be divided between the remaining members of the 
suburban water users. There would be no additional impact on the City ratepayers. 

92-114 



The second question which relates to the actual cost of the project over the next two years 
is somewhere in the range of $10 to $12 million. When we are talking about spending a 
half a billion dollars to build a filter plant, spending $10 to $12 million in the next two 
years to determine its size, where to put it, what the process would be, and, the approach 
to take, it is a small price to pay. Secondly, if you look at any semblance of hope of 
coming up with legislative relief, as small as that may be, we could not even be able to 
approach the State or EPA without having the data that is going to come out of this 
contract. 

Third, is the big picture. What is the necessity for filtration? The bottom line is there is a 
law that says we have to do it - Everybody that has looked at it, the lawyers, the 
engineers, the water purification people, the professionals in the industry, agree that this is 
where we are going. If you do not approve this third piece of the triangle what will 
happen at a minimum is either delays or inaction in this particular process that will result 
in fines, potential lawsuits, the potential of receivership, the public notification which will 
totally destroy the public trust in the department. 

Commissioner Makras said that what is being shared here today is potentially we could 
have a $25,000 penalty times 30 which is $750,000. He said that he disagreed with that. 
No where in this document does it say we are obligated to have a filtration plant for our 
water districts. We are imposing that on ourselves. He said that there are many options 
out there and he differed that we should spend $10 million without looking and having 
discussed and look at the various options. For one - we could put a filtration plant in San 
Andreas for roughly $50 million - filter everything north of Millbrae - tell our wholesale 
customers to go out and filter for themselves. He said he was not saying he wanted to 
take that course but that is a true option that is before the Commission, his concern is one 
of a business management approach. We can take care of ourselves, San Franciscans, for 
$50 million. Staff is saying we have a $500 million package of which our portion is 35% 
of the whole. I think we need to look at - could we filter each meter. Could we look at a 
small filtration plant and make one for every district or every main line. What we are 
entering into is basically floating $500 million worth of bonds, turning to San Francisco 
and telling them to fund one of the biggest bond floats that I know of to service 65% of 
the water for someone else. We assume all of the risk - we assume all the responsibility 
and they get a free ride. If we are going to float bonds, why cannot we say let's share the 
bonds and have them float their portion of the bonds. 

We should negotiate with the water districts up front and have them on board. If San 
Franciscans are to assume the responsibility of a half billion dollar filtration plant that 
thirty districts are going to benefit over 50%, I say we sit down with the districts and 
negotiate with them. If San Francisco is going to assume the risk, we should cut a 
business deal with revenue enhancements for the City and a return on our investment. 

Mr. Elzey. replied that staff is not prepared to respond at this time we want to study this 
before we respond. 

Mr. Mullane stated that much of the data collected in the Phase 4 water quality study will 
be collected in the first quarter or two of the project. That data will filter into the other 
two projects and allow them to continue on a simultaneous basis. 

Commissioner Jefferson moved to approve the amendment to the agreement and request 
staff to report on the issues raised by Commissioner Makras. Commissioner Jefferson 
said that the Commission would have an opportunity to act later because it would not 
have committed to the project other than through the RFP process for the EIR and 
conceptual engineering. Commissioner Hardeman seconded. Commissioner Jefferson 
said that the information coming out of this study will be needed even if we proceed on 
another track. 

Commissioner Carson moved to continue this matter for two weeks for more 
information. Commissioner Jefferson withdrew his motion. Commissioner Makras 
seconded the motion for continuance. On the question, Commissioner Hardeman voted 
no, and Commissioners Chin, Makras, Jefferson and Carson voted for the continuance. 

92-115 



Resolution No. 92-0154 ~ Approving the use of a pass-fail prequalification process to 
screen suitable contractors to submit price bids on the Muni Metro Turnaround 
construction contract. 

Commissioner Makras suggested that the Commission table this and consider whether it 
wants to have a two tier system for bidding. Commissioner Jefferson spoke in favor of 
having a two tier system because the current system does not allow any other selection 
criteria other than price. 

Mr. Flint Nelson of the Utilities Engineering Bureau, stated that this process has the 
support of the federal government and its consultant, and the insurance underwriters for 
this project. 

Commissioner Jefferson volunteered to work on a committee to look at possible changes 
to the bidding process. President Chin appointed Commissioner Jefferson to review the 
issue. Commissioner Hardeman also volunteered to work on the bidding process. 

On motion of Commissioner Jefferson, seconded by Commissioner Carson, Resolution 
No. 92-0154 was unanimously approved. 

Public Comment 

Mr. David Pilpel inquired about the impact of cutting more positions vacated by 
Proposition A. Mr. Pilpel stated that if the 19th Avenue folks do not comment on the 
Short Range Transit Plan they should not be upset if action is taken subsequently. He 
stated he would submit his suggestions to the Commission on a citizens advisory 
committee. 






THEREUPON THE MEETING WAS ADJOURNED: 5:40 P.M. 



Romaine A. Boldridge 
Secretary 



92-116 



MINUTES 






MAIN PUBLIC LIBRARY 
Government Documents 
Civic Center - lst-Fl 



I 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

May 26, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUMENTS D£P¥ 

M 1 6 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-117 



Call to Order 2: 10 P.M. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner Michael 
E. Hardeman 



On motion of Commissioner Makras, seconded by Commissioner Jefferson, the Minutes 
of the regular meeting of May 12, 1992 were approved, as corrected. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0156 MR Requesting the Controller to draw warrants in payment of claims 

against the San Francisco Municipal Railway, totalling $199,342.12. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0157 FM Approving collection of charges for damages for the month of March, 
1992 against the San Francisco Municipal Railway from miscellaneous 
debtors in the amount of $15,268.86 and write-off compromise 
reductions for comparative negligence in the amount of $3,550.00; San 
Francisco Water Department write-off compromise reductions for 
comparative negligence in the amount of $3,009.90; and Bureau of 
Light, Heat & Power from miscellaneous debtors in the amount of 
$2,448.52. 

VOTE: Ayes-Chin, Makras, Jefferson. Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0158 WD Accepting the work performed under WD-2078. Baden Pump 
Station-Purchase of Water Pumps and Motors as satisfactorily 
completed, and authorizing final payment in the amount of $3,000.00 to 
the Contractor, Dresser Pump Industries. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 



92-118 



RESOLUTION 
NO 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 



92-0159 FM Approving a transfer of funds of $200,000 from Water Department Bay 
Division Pipeline No.l and No. 2, Earthquake Brace/Repair, to Bay 
Division Pipeline No. 4, Main Break. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0160 GM Ratifying and approving the non Civil Service and Temporary 

appointments and removals made by the General Manager for the 
month of April, 1992. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0161 GM Authorizing the General Manager of Public Utilities to amend the Hetch 
Hetchy Water and Power budget request by increasing the General 
Fund contribution from $10 million to $17 million; and reflecting a 
contribution of $2.8 million to the Municipal Railway; and requesting 
that the Municipal Railway's budget be amended accordingly. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Hardeman, the following resolution 
was adopted: 

92-0162 WD Authorizing the General Manager of the Water Department to execute 
Amendment No. 3 for Professional Services Agreement with Camp 
Dresser and McKee, Inc. in an amount not-to-exceed $2,863,475 for 
water quality planning studies; and requesting the Controller to transfer 
funds. 

VOTE: Ayes-Chin, Makras, Carson, Hardeman 
Noes -Jefferson 



Copies of the above resolutions are on file in the office of the Secretary 
of the Public Utilities Commission. 






92-119 



Requests from the Commission 



Passes and Automobiles 

Commissioner Makras requested that the Commission calendar for discussion the subject 
of free passes on the Municipal Railway. Commissioner Jefferson requested that at the 
same time staff calendar an item concerning employee automobile usage. President Chin 
requested that staff report in 30 days and provide background materials including 
previous Commission action and Memorandum of Understanding (MOU) information. 

Attorney's Fees 

Commissioner Makras requested that the City Attorney's office provide statistics from 
settled cases regarding the issue of attorney's fees and whether or not it would be 
advantageous for the Commission to include a clause providing for attorney's fees in 
contracts. 

Charter Amendments 

President Chin requested that the Commission receive ongoing information and staff 
analyses of proposed Charter Amendment which may affect the structure of the Public 
Utilities Commission. 

Filtration 

Commissioner Makras requested to be informed of all meetings with the Bay Area Water 
Users Association (i.e., date, time, and place), concerning discussion of a proposed Hetch 
Hetchy Filtration Plant. 






The Public Utilities Commission held a public hearing in accordance with Section 3.598 
of the Charter of the City and County of San Francisco to consider modifications to the 
schedule of Rates, Fares and Charges of the Municipal Railway. The following persons 
commented at the public hearing: 



David Pilpel 
Larry L. Jackson 
Catherine Reardon 
Arlene Wong 
Barbara Baker 
Cheryl Damico 
Katherine Alberto 
Erma Brim 
Michael Kwok 
Jack Gelmar 
Marvis Phillips 
Stephen Kuttner Jr 
Ken Farmer 
Shirley A. Bierly 
Michael Henderson 
Phillip Seronick 



Shelley E. Salieri 
Robert Pender 
Keith Cogswell 
Dee Ann HendrLx 
Bruce M. Oka 
Jewell McGinnis 
Barbara Schipper 
David Fairley 
Samuel R. Ganczaruk 
William A. Horn 
Enid Ng Lim 
Ricardo Leon 
Don Eilhelberger 
Carey Liu 
David Grace 
Lorin S. Rosemond 



92-120 



J. Rhett Varnador 
Edward G. Evans 
Diane 

Mr. Thompson 
Landis Whistler 
Jane Cutter 
Lee Anne Popkin 
Herbert Weiner 
Shelley Rauchman 
Greg R.E. Millard 
Erik Rader 
Bruce Doohar 



Tom Karnes 
Richard Becker 
Saul Kanowitz 
Bruce Baginski 
Jerry Grace 
Ron Holladay 
Maya Roth 
Keith Pavlik 
Beth Berkelhammer 
Tim Dunn 
Al Riley 



The public hearing was continued to a special meeting on May 28, 1992, at 7:00 P.M. at 
the Southeast Community Facility Community Meeting Room, 1800 Oakdale Avenue, 
San Francisco, California. 






THEREUPON THE MEETING WAS ADJOURNED: 8:08 P.M. 



Romaine A. Boldridge 
Secretary 



92-121 



_v 



/// 

MINUTES 



£ 



BLIC UTILITffiS COMMISSION 



CITY AND COUNTY OF SAN FRANCISCO 

/ 



Frank M. Jordan 
Mayor 



DOCUMENTS DEPT. 

JUN 6 WW 



SPECIAL MEETING 



Southeast Community Facility 
Community Meeting Room 

1800 Oakdale Avenue 
San Francisco, CA 



May 28, 1992 

7:00 P. M. 

COMMISSIONERS 



Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Project 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 



Romaine A. Boldridge 
SECRETARY 



Call to Order: 7:15 P.M. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A.Carson, Commissioner Michael 
E. Hardeman 



A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO 

On motion of Makras, seconded by Jefferson, the following resolution 
was adopted: 

92-0163 MR Approving the Clean and On-time and the Passenger Incentive 

programs for 1992-93, and approving a revised fare schedule for the 
Municipal Railway to be forwarded to the Board of Supervisors with a 
recommendation for adoption. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 



Copies of the above resolution are on file in the office of the Secretary 
of the Public Utilities Commission. 






The Public Utilities Commission continued the public hearing from May 26, 1992 in 
accordance with Section 3.598 of the Charter of the City and County of San Francisco to 
consider modifications to the Schedule of Rates Fares and Charges of the Municipal 
Railway. The following persons commented at the public hearing: 

John Denham Gloria La Riva 

David Paul Grace Sarah Jay 

John Rowson Bruce Buginski 

Bruce Oka Arlene Wong 

David Hirata Constance Kurupper 

Larry Jackson Andrew Freeman 

Leatrice Remo Jerry Grace 

David Pilpel Richard Becker 

Deetje Boler Bobbie Brown 

Hedy Griffin Larry Martin 



THEREUPON THE MEETING WAS ADJOURNED: 9:45 P. M. 



Romaine A. Boldridge 
Secretary 



92-123 



MINUTES 



MAIN PUBLIC LIBRARY 
Bovernment Documents 
Civic Center - 1st Floor 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 



REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

June 9, 1992 

COMMISSIONERS 



hem 

T. 

(JON 2 h 1992 

POouC LIBRARY 



Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-124 



Call to Order 2: 15 P.M. 

Present: Vice President Victor G. Makras, Commissioner James D. Jefferson, 

Commissioner Patricia A. Carson, Commissioner Michael E. Hardeman 

Excused: President Gordon Chin 

Vice President Victor Makras presided. 

On motion of Commissioner Jefferson, seconded by Commissioner Carson, the Minutes 
of the Regular Meeting of May 26 and Special Meeting of May 28, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0164 MR Requesting the Controller to draw warrants in payment of claims 

against the San Francisco Municipal Railway, totalling $101,500.00. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0165 MR Approving collection of charges for damages for San Francisco 
Municipal Railway from miscellaneous debtors in the amount of 
$4,536.91 and write-off compromise reductions in the amount of 
$31 1.28; and San Francisco Water Department from miscellaneous 
debtors in the amount of $669.36; and Bureau of Light, Heat & Power 
from miscellaneous debtors in the amount of $38.83 for the month of 
April 1992. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0166 WD Approving plans and specifications as prepared and recommended by 
staff and authorizing Bid Call for San Francisco Water Department 
Contract No. WD-2129, 12-Inch Ductile Iron Main Installation in 
Johnstone Drive, Medical Center Road and Clarendon Avenue. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



92-125 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0167 MR Permiting Gildersleeve Electric to perform work in the place of and 
instead of Reid Electric Inc., in the proposed subcontract amount of 
$15,512.58 under Municipal Railway Contract Number MR-999 Curtis 
E. Green Light Rail Facility - Main Maintenance Building, 
Modification to LRV Lifts. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0168 WD Accepting the work performed under San Francisco Water Department 
Contract No. WD-2065, 12-Inch Ductile Iron Main Installation in 
Lombard, Powell, Union and Stockton streets from Jones and Green 
streets, as satisfactorily completed ;and approving debit Contract 
Modification No.l in the amount of $32,064.50; authorizing an 
extension of time for unavoidable delay of 5 working days; and 
authorizing final payment in the amount of $41 ,3 1 1.80 to the 
Contractor, P & J Utility Company. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0169 MR Requesting the Board of Supervisors' approval to extend the time for 
award of Muni Contract No. MR-898, 14 Mission Line Trolley 
Overhead Reconstruction (Phase A - Persia Avenue to Daly City Loop). 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Carson, the following resolution 
was adopted: 

92-0170 WD Consenting to the Assignment of Lease from California Federal Bank, 
FSB, (beneficiary of Carruf Corporation, N. V., Lessee), as Assignor, to 
Don Pearlman Joint Venture Eleven, Assignee, for the remainder term 
of said Lease, subject, to the requirements that the Assignee assume all 
the covenants, conditions, duties and obligations contained in said 
Lease. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the following resolution 
was adopted: 

92-0171 MR Approving the award of Contract MR-1034R to Alcatel Canada, Inc. 
upon the terms and conditions negotiated by the parties in an amount 
not to exceed $52.7 million; and requesting that the Board of 
Supervisors approve Contract MR-1034R pursuant to Section 3.502 of 
the Charter. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



92-126 



On motion of Hardeman, seconded by Carson, the following resolution 
was adopted: 

92-0172 MR Authorizing the San Francisco Municipal Railway to enter into a 
contract with Morrison Knudsen Corporation for an amount not to 
exceed $8,047,450, for the restoration of 14 PCC streetcars. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0173 MR Authorizing the San Francisco Municipal Railway to modify the 

contract with PGH Wong Engineering by extending the term of the 
contract to June 30, 1994 and increasing the contract amount by 
$215,304 to a total of $371,598 for Phase II work on the PCC Streetcar 
Restoration Project. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Carson, the following resolution 
was adopted: 

92-0174 MR Authorizing the Municipal Railway to modify the existing contract with 
Booz, Allen and Hamilton, Inc. to support the completion of the 
procurement program for (60) Articulated Trolley Coaches, and to 
increase the contract amount by $373,000 to a total not to exceed 
$1,120,129, and to extend the term of the contract to June 30, 1993. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0175 MR Authorizing the circulation of a Request for Proposals for professional 
services to undertake a Bayshore Corridor System Planning Study. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0176 HH Authorizing the General Manager of Public Utilities to enter into the 
seventh amendment to the agreement with Grueneich, Ellison and 
Schneider increasing the amount that may be paid under the contract by 
$852,000, for a total amount not to exceed $2,162,500 for legal services. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Carson, the following resolution 
was adopted: 

92-0177 UEB Authorizing the Manager of the Utilities Engineering Bureau to solicit 
Requests For Proposals from engineering consulting firms to provide 
professional services to perform the "Needs Assessment and Functional 
Study" for the Water Quality Division Laboratory. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 
92-127 



On motion of Makras, seconded by Jefferson, the following resolution 
was adopted: 

92-0178 UEB Commending Mr. Tom Mullaney on the occasion of his retirement and 
extending best wishes to him and his family for good health and 
happiness for many years to come. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



On motion of Jefferson, seconded by Carson, the following resolution 
was adopted: 

92-0179 UEB Authorizing the Manager, Utilities Engineering Bureau, to negotiate 
and execute an agreement with EIP Associates to provide 
environmental consultant services not to exceed $350,000.00 for a term 
of two years. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0180 FM Authorizing the Assistant General Manager, Finance, Public Utilities 
Commission, to apply for, accept, and expend $1,704,000 from 
1991-92 State Traffic Systems Management funds or Petroleum 
Violation Escrow Account funds for the Municipal Railway, to support 
energy efficient transportation improvements, including signal system 
pre-emption installations. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0181 FM Authorizing the Assistant General Manager of Finance, Public Utilities 
Commission to apply for and accept up to $3.1 million of Bridge Toll 
funds for SFMRIC lease payments and $51.5 million of regional funds, 
such as, Transportation Development Act (TDA), State Transit 
Assistance (STA), AB 1 107 half-cent sales tax revenues, BART 
Transfer funds, and federal assistance through the Section 8 and 9 
programs for 1992-93 Municipal Railway operations, and to expend the 
$64,000 in planning funds from the Section 8 program. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 

On motion of Carson, seconded by Hardeman, the following resolution 
was adopted: 

92-0182 FM Authorizing the Public Utilities Commission General Manager to 
execute a permit to use property at Pier 30 - 32 at the Port of San 
Francisco for the Municipal Railway Annual Bus Roadeo. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 



92-128 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0183 FM Approving approximately $12.4 million additional in the one-time 

contribution to the City's general fund of Transit Impact Development 
Fee funds. 

VOTE: Ayes - Makras, Jefferson, Carson, Hardeman 






Appointments 

President Makras appointed himself and Commissioner Jefferson as a task force to 
monitor and review the issue of filtration of Hetch Hetchy water. 

President Makras appointed Commissioners Jefferson and Hardeman to monitor the 
Bayshore Corridor Study. 

Requests From the Commission 

Leases 

Commissioner Makras requested that the Water Department review its lease procedures 
and develop a mechanism for implementing month to month leases in cases where the 
annual revenue is not significant, and also that the department record a memorandum of 
the lease on the property to avoid future problems concerning ownership. 

Commissioner Makras requested that the Water Department report to the Commission 
regarding water usage by lessees, specifically, whether or not the water is metered and 
paid for by the lessee and whether usage is monitored by the rationing program. 

On-time and Graffiti Programs 

Commissioner Makras requested a report at the next Commission meeting regarding the 
Municipal Railway's current on-time and graffiti programs to use as a baseline for 
comparing the effectiveness of the new programs. 

Performance Profile 

Commissioner Makras requested that the Municipal Railway provide details concerning 
the increase in complaints and what the department is doing to address this issue. 

Liquidated Damages 

Commissioner Makras requested a copy of staff's calculations regarding the liquidated 
damages on Contract No. MR- 1034 with Alcatel Canada, Inc. 

Professional Services Contracts 

Commissioner Jefferson requested a summary of the contracts the department currently 
has with the firm of Booz, Allen and Hamilton and the contracts they have had over the 
last 5 years. 






THERE UPON THE MEETING WAS ADJOURNED: 4:20 P.M. 



92-129 



Cent 

MINUTES 

PUBLIC UTILITIES COMMISSION 

CITY AND COUNTY OF SAN FRANCISCO 



Civic CPn^Z OCUlI,Gn ts 



er - 1st 



Floor 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

/June 23, 1992 

4 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUMENTS DEPT. 

JUL 17 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-130 



Call to Order: 2:10 P.M. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner Michael 
E. Hardeman 

On motion of Commissioner Makras, seconded by Commissioner Carson, the Minutes of 
the Regular Meeting of June 9,1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 



On motion of Chin, seconded by Jefferson, the following resolution was 
adopted: 

92-0185 MR Approving the Municipal Railway Metro System Key Station 

Identification and Accessibility Implementation Plan for disabled 
access to the Light Rail System. 

VOTE: Ayes - Chin, Jefferson, Carson, Hardeman 
Noes - Makras 

On motion of Makras, seconded by Hardeman, the following resolution 
was adopted. 

92-0186 MR Requesting the Controller to draw warrants in payment of claims 
against the San Francisco Municipal Railway, totalling $60,000.00. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Hardeman, the following resolution 
was adopted. 

92-0187 WD Requesting the Controller to transfer $250,000 from the San Andreas 
Water Treatment Plant Expansion No. 2 Project (FAMIS No. 692772) 
to supplement the San Antonio Pump Station Improvement Project 
(FAMIS No. 7-41108). 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Hardeman, the following resolution 
was adopted. 

92-0188 WD Requesting the Controller to transfer funds from the Water 

Department's craft salaries in the amount of $173,694 for the payment 
of Worker's Compensation claim payments in fiscal year 1991-92. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 



92-131 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted. 

92-0189 WD Authorizing the General Manager of the Water Department to advertise 
and circulate a Request-for-Proposal (RFP) from interested professional 
consulting firms to prepare a groundwater master plan in San Francisco. 

VOTE: Ayes - Chin, Makras, Jefferson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted. 

92-0190 WD Authorizing the General Manager of the Water Department to advertise 
and circulate a Request-for Proposal (RFP) from interested professional 
consulting firms to prepare an environmental impact review for the 
groundwater master plan in San Francisco. 

VOTE: Ayes - Chin, Makras, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted. 

92-0191 HH Authorizing the General Manager, Hetch Hetchy Water and Power, to 
negotiate and execute the fourth amendment to the agreement with 
Bookman-Edmonston Engineering to increase their funding by 
$478,000 for the Fiscal Year 92-93, bringing the Contract total to 
$839,500, and extend the contract term through August 31, 1993. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the following resolution 
was adopted. 

92-0192 HH Authorizing the General Manager of Public Utilities to negotiate and 
execute a 1 year extension of the professional services agreement with 
ERM-West, Inc. to provide engineering services through June 30, 1993. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Makras, the following resolution 
was adopted. 

92-0193 HH Authorizing the General Manager of Public Utilities to modify the 

contract with Utah State University Foundation increasing the amount 
$41,142 for study of valves on the Canyon Penstock. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted. 

92-0194 WD Approving Amendment No. 1 to Contract WD-2088 increasing the 
contract by $127,457.23 and extending the time for completion to 
October 1, 1992; and approving Amendment No. 2 which increases the 
maximum contract amount by $370,000 to a total of $1,839,112.23, 
subject to the approval of the Board of Supervisors, Stacy and Witbeck, 
Inc., Nationwide Construction Company, Inc. and West Bay 
Equipment, AJV, Contractor. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 
92-132 



On motion of Jefferson, seconded by Makras, the following resolution 
was adopted. 

92-0195 MR Approving Contract Modifications 4 through 1 1 in the aggregate 

amount of $386,294.00, to San Francisco Municipal Railway Contract 
No. MR-869, N.L. Barnes Construction Company, Inc., Contractor. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted. 

92-0196 WD Approving Contract Modification No. 2 to Water Department Contract 
No. WD-2037R, Calaveras Pipeline Replacement, to San Francisco 
Water Department, increasing amount $776,614, Stacey and Witbeck, 
Inc., Contractor. 

VOTE: Ayes - Chin, Makras, Jefferson, Carson, Hardeman 

Requests From The Commission 

Requisitions 

Commissioner Jefferson moved, Commissioner Hardeman seconded, a motion which was 
unanimously approved, to send a communication to the Mayor expressing concern about 
the number of unapproved requisitions and inquiring as to whether there is a hiring freeze 
for Municipal Railway and PUC Bureau positions. 

Leases 

Commissioner Makras requested a list of Water Department leases where the lessee is not 
charged for water usage. 

Bus Washer 

Commisioner Makras requested that staff determine the cost of restoring the Potrero 
Division bus washer to service prior to completion of the rehabilitation project. 

Claims 

Commissioner Makras requested the file on a Small Claims Court case where the plaintiff 
was awarded damages due to a late bus. 

Accessibility 

President Chin requested that Municipal Railway staff work with the disabled community 
and report to the Commission in 6 months with an update of the planning process for 
future access ibility. 

Vehicle Usage and Muni Passes 

President Chin requested that a item be calendared in one month to discuss employee 
vehicle usage, including the number of emergency calls in the last 12 months and the 
Muni employee pass policy. 

Station Agents 

Commissioner Jefferson requested that an item be calendared for July 14, 1992 to adjust 
the 1992-93 budget to substitute Station Agents for Car Cleaners. 

***************** 



92-133 



In accordance with the Americans with Disabilities Act, the Public Utilities Commission 
held a public hearing on the Municipal Railway Key-Station Plan to provide access for 
disabled persons to key stations on the Muni Metro system. The following persons 
commented at the public hearing: 



Yvonne Morro 
John Cailleau 
Bob Planthold 
Laurie Hodas 



Edward G. Evans 
Landis Whistler 
Paul Kavanaugh 






THEREUPON THE MEETING WAS ADJOURNED: 4:20 P.M. 



Romaine A. Boldridge 
Secretary 



92-134 






,,<M I N U 



TES 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

SPECIAL MEETING 

Room 282, City Hall 

5:00 P.M. 

^une 30, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUMENTS DEPT. 
JUL 17 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Jill R Thompson 
ACTING SECRETARY 



92-135 



Call to Order: 5:10 p.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

Patricia A. Carson, Commissioner Micheal E. Hardeman 



Excused: 



Commissioner James D.Jefferson 



A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 



92-0197 



WD 



On motion of Hardeman, seconded by Carson, the following 
resolution was adopted: 

Authorizing the General Manager of Public Utilities to purchase 
water from the State Water Bank by executing the 1992 Water Bank 
Agreement inclusive of Amendment No. 1 thereto and executing a 
wheeling agreement with the Department of Water Resources; and 
directing the General Managers of the Water Department and Hetch 
Hetchy Water and Power to identify additional water for purchase 
up to the capacity of the South Bay Aqueduct, subject to the 
approval of the Commission. 

VOTES: Ayes - Chin, Makras, Carson, Hardeman 



Requests from the Commission 

State Water Bank 

President Chin requested a report on the State Water Bank since its inception. 
Specifically, he wanted the report to show how much water has been made available, who 
has bought from the Bank, how much have they purchased and at what price. 



THEREUPON THE MEETING WAS ADJOURNED: 6:05 P.M. 



Jill R. Thompson 
Acting Secretary 



92-136 



MAIN PUBLIC LIBRARY 
Government Documents 
Civic Center - 1st Floor 



^ 



MINUTES 

PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

REGULAR MEETING 
Room 282, City Hall 
2:00 P.M. 
.July 14, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUMENTS DEPT. 
AUG 5 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-137 



Call to Order: 2:15 p.m 
Present: 



Excused: 



President Gordon Chin, Vice President Victor G. Makras, Commissioner 
Patricia A. Carson, Commissioner Micheal E. Hardeman 

Commissioner James D.Jefferson 



On motion of Commissioner Makras, seconded by Commissioner Hardeman, the Minutes 
of the Regular Meeting of June 23 and Special Meeting of June 30, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 



92-0198 



MR 



On motion of Hardeman, seconded by Makras, the following 
resolution was adopted: 

Approving the plans and specifications as prepared and 
recommended by staff and authorizing Bid Call for Municipal 
Railway Contract No. MR-1050, Overhead Lines Traction Power 
System, Various Locations - Installation of Traffic Pre-empts Phase 
I. 

VOTE: Ayes - Chin, Makras, Carson, Hardeman 



On motion of Makras, seconded by Hardeman, the following 
resolution was adopted. 

92-0199 WD Approving the plans and specifications as prepared and 

recommended by staff and authorizing Bid Call for Water 
Department Contract No. WD-2132, Millbrae Shops Phase UA. 

VOTE: Ayes - Chin, Makras, Carson, Hardeman 

On motion of Hardeman, seconded by Makras, the following 
resolution was adopted. 

92-0200 WD Awarding San Francisco Water Department Contract No. WD-21 1! 

Replace Underground Fuel/Oil Tanks at CDD Yard - 1990 
Newcomb Street, in the amount of $375,928.00 to Walton 
Engineering, Inc. 

VOTE: Ayes - Chin, Makras, Carson, Hardeman 



On motion of Makras, seconded by Hardeman, the following 
resolution was adopted. 

92-0201 HH Accepting the work performed under Hetch Hetchy Water and 

Power Contract No. HH-813R, Assembly and Pre-Energization Test 
of Moccasin Spare Transformer, as satisfactorily completed; 
approving debit Modification No. 2 in the amount of $17,594.00; 
authorizing an extension of time for unavoidable delay of 108 days; 
and authorizing final payment in the amount of $21,306.25 to the 
Contractor, Calco West Electric, Inc. 

VOTE: Ayes - Chin, Makras, Carson, Hardeman 
92-138 



On motion of Hardeman, seconded by Makras, the following 
resolution was adopted. 

92-0202 PER Ratifying and approving the Non Civil Service and Temporary 

appointments and removals made by the General Manager for the 
month of May, 1992. 

VOTE: Ayes - Chin, Makras, Carson, Hardeman 

On motion of Hardeman, seconded by Makras, the following 
resolution was adopted. < 

92-0203 MR Reallocating $280,648 from surplus funds available in Muni's 

budget for the Bureau of Light, Heat, and Power, Data Processing 
Professional Services, CAO Insurance & Risk, Security, Training, 
and Sewer Service Charges to offset funding shortfalls for BART 
payfnents, Materials and Supplies, and Other Contractual Services. 

VOTE: Ayes - Chin, Makras, Carson, Hardeman 

On motion of Hardeman, seconded by Makras, the following 
resolution was adopted. 

92-0204 WD Approving the request to extend the Professional Services contract 

completion time with Woodward-Clyde Consultants to December 
31, 1992 to perform additional work consisting of Embankment 
Stability Study for Water Department CIP Project W755.0 Stanford 
Heights Reservoir Seismic Study. 

VOTE: Ayes - Chin, Markas, Carson, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted. 

92-0205 MR Authorizing the PUC General Manager to amend PUC's existing 

contracts with the California Department of Transportation, 
Caltrans, to provide feeder bus service to and from the Caltrans 
terminal at 4th and Townsend, collect ridership data, and for sales of 
Peninsula Passes; and transferring the management of these 
contracts from Caltrans to the Joint Powers Board. 

VOTE: Ayes - Chin, Makras, Carson, Hardeman 

At 5:10 P.M. Carson was excused. 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0206 MR Authorizing the General Manager of Public Utilities to enter into a 

lease agreement with the Municipality of Metropolitan Seattle for 
wheelchair accessible trolley coaches for operation on line 
31 -Balboa and to expend available funds to transport said coaches 
and to modify said coaches to make them suitable for Municipal 
Railway service. 

VOTE: Ayes - Chin, Makras, Hardeman 



92-139 



On motion of Hardeman, seconded by Chin, the following 
resolution was adopted: 

92-0207 HH Authorizing the PUC General Manager to negotiate and execute a 

three (3) year extension of the term of the contract with Call 
Company to June 30, 1995, with no additional funding at this time. 

VOTE: Ayes - Chin, Makras, Hardeman 

On motion of Hardeman, seconded by Chin, the following 
resolution was adopted: 

92-0208 HH Approving the terms and conditions of the second renewal of a 

twenty-year (20) lease arrangement with the State Department of 
Fish and Game to commence effective July 1, 1992; and authorizing 
the Real Estate Department to proceed with the necessary legislation 
whereby the Board of Supervisors will approve the agreement and 
authorize the Mayor to execute same on behalf of the City. 

VOTE: Ayes - Chin, Makras, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0209 UEB Approving Takeover Agreement between City and Federal 

Insurance Company to provide for completion of Hetch Hetchy 
Contract No. HH-830, San Joaquin Pipeline No. 2 - Segment 2 - 
Replace Mortar Lining, in accordance with the said Contract and 
subject to the conditions and requirements as set forth in said 
Takeover Agreement, and authorizing the Manager, Utilities 
Engineering Bureau, to execute said Takeover Agreement on behalf 
of the Public Utilities Commission of the City and County of San 
Francisco. 

VOTE: Ayes - Chin, Makras, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0210 UEB Approving Amendment No. 1 to the Personal Services Agreement 

Between the City and County of San Francisco Public Utilities 
Commission, Utilities Engineering Bureau and Consolidated 
Engineering Laboratories for Testing Laboratory and Technical 
Engineering Services (UEB Contract No. 417), which amendment 
increases the maximum amount under the contract from $100,000 to 
$150,000, and extends the contract completion date by one year. 

VOTE: Ayes - Chin, Makras, Hardeman 

On motion of Makras, seconded by Chin, the following resolution 
was adopted: 

92-02 1 1 UEB Approving Debit Modification No. 8 in the amount of $ 1 50,000.00 

to San Francisco Water Department Contract WD-2060, San 
Andreas Water Treatment Plant Expansion No. 2, S. J. Amoroso 
Construction Company, Inc./Verrett Construction Company, Inc., 
Contractor. 

VOTE: Ayes - Chin, Makras, Hardeman 



92-140 



On motion of Hardeman, seconded by Chin, the following 
resolution was adopted: 

92-0212 FM Authorizing the Assistant General Manager, Finance, Public 

Utilities Commission to certify that the San Francisco Public 
Utilities Commission will follow Senate Bill 2800 guidelines as 
approved by the California Transportation Commission (CTC) and 
as authorized specifically for San Francisco Public Utilities 
Commission in CTC Resolution No. ALM-90-1, to enable the 
advance expenditure of required local match funds for current and 
future state funded projects. 

VOTE: Ayes - Chin, Makras, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0213 FM Authorizing the Assistant General Manager, Finance, Public 

Utilities Commission to apply for, accept and expend $45,885,000 
for 1991-92 Proposition 108 Urban Rail Bonds Funding, and an 
equal amount of regional/local matching funds for the following 
eight Municipal Railway Projects: Muni Rail Trolley Overhead 
Study, Muni Metro Extension to Sixth Street, Light Rail Vehicle 
Purchase - 12 New LRV's, Muni Metro Subway Signal System, 
F-Market Streetcar Line and PCC Streetcars, F-Embarcardero 
Streetcar Extension, Muni Metro Extension - 6th to 16th Streets, and 
Mission Bay Trolley Extension. 

VOTE: Ayes - Chin, Makras, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0214 Authorizing the Assistant General Manager, Finance, Public 

Utilities Commission to apply for, accept and expend $15,374,260 
of 1992-93 State of California Transit Capital Improvement funds 
and an equal amount of capital matching funds for the following 15 
Municipal Railway capital projects: Muni Metro Turnback, Diesel 
Bus Rehab, Articulated Trolley Purchase, Market Street 
Thoroughfare, F-Market-Embarcadero Streetcar Line, Trolley 
Overhead Reconstruction, Metro Center Improvements, LRV 
Purchase, Metro East Facility, Cable Car Renovation, 71 -Noriega 
Electrification, J/M Layover Terminals, Metro East/Illinois RR 
Bridge, Metro Accessibility Improvements and 14-Mission Trolley 
Extension. 

VOTE: Ayes - Chin, Makras, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0215 FM Authorizing the use of standby pay for the Water Department and 

the Finance Bureau; and directing staff to file the Standby Pay 
Report with the Civil Service Commission. 

VOTE: Ayes - Chin, Makras, Hardeman 



92-141 



Requests From The Commission 

Complaints 

Commissioner Makras requested a report at the next meeting on the increase in Municipal 
Railway complaints. 

J/M Platform and Trackway Improvement Project 

President Chin requested more information on this project, including: staff's analysis of 
the cost savings; staff's analysis of the community alternative, with estimates of both 
capital and operating costs; the status of the funding if the pocket tracks are deleted; 
documentation on other areas of the City which have pocket tracks; and the sections of the 
Environmental Impact Statement on the J-Line Extension which dealt with this project. 

Revenue Vehicle Insurance 

Commissioner Makras requested information at the next meeting on the City's policy 
regarding insurance - specifically, whether the City is self-insured or does the City 
purchase vehicle insurance, and what the final insurance provisions are in the Seattle 
trolley coach lease. 



Thereupon the Meeting Was Adjourned: 6: 15 P. M. 



Romaine A. Boldridge 
Secretary 



92-142 



X MIN 



UTES 



^ 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 

Mayor 

f 
REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

My 28, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUMENTS DEPT. 

AUG 7 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-143 



Call to Order: 2:15 p.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 

On motion of Commissioner Hardeman, seconded by Commissioner Jefferson, the 
Minutes of the Regular Meeting of July 14, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 

RESOLUTION 
NO. 

On motion of Jefferson, seconded by Chin, the following resolution 
was'adopted in executive session: 

92-0216 MR Approving settlement in the case of Jerri Smock v. CCSF, et al. 

Superior Court No. 930-622. 

VOTE: Ayes-Chin, Makras, Jefferson 
Noes-Carson, Hardeman 

On motion of Jefferson, seconded by Chin, the following resolution 
was adopted: 

92-0217 MR Requesting the Controller to draw warrants in payment of claims 

against the San Francisco Municipal Railway, totalling $179,000.00. 

VOTE: Ayes-Chin, Jefferson, Carson, Hardeman 
Excused - Makras 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-02 1 8 WD Authorizing bid call for Water Department Contract No. WD-2 1 34, 

CDD Summit Pump Station Standby Generator and Related Work. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0219 MR Accepting the work performed under Contract No. MR-892 at the 

Scott Facility by San Luis Construction as satisfactorily completed, 
approving Contract Modification No. 3 in the credit amount of 
($2,308.20) and authorizing final payment in the amount of 
$5,478.10 to the Contractor, San Luis Construction. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-9220 GM Ratifying and approving the Non Civil Service and Temporary 

appointments and removals made by the Geneal Manager for the 
month of June, 1992. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

92-144 



RESOLUTION 
NO. 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0221 MR Rejecting protest of Angotti and Reilly in the matter of Contract No. 

MR-889R, Flynn Facility Modifications. 

VOTE: Ayes-Makras, Carson, Hardeman 
Noes-Chin, Jefferson 

< 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0222 MR Rejecting all bids and authorizing rebidding, Municipal Railway 

Contract No. MR-889R, Flynn Facility Modifications. 

VOTE: Ayes-Makras, Carson, Hardeman 
Noes-Chin, Jefferson 

On motion of Makras, seconded by Carson, the following resolution 
was adopted: 

92-0223 WD Accepting work performed under San Francisco Water Department 

Contract No. WD-2067, 8 -Inch Ductile Iron Main Installation in 
Hayes Street between Buchanan and Larkin Streets, as satisfactorily 
completed; approving debit Contract Modification No. 1 in the 

amount of $ ; authorizing an extension of time for unavoidable 

delays of 22 working days; and authorizing final payment in the 
amount of $ to the Contractor, P & J Utility Company. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson 
Noes -Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0224 MR Authorizing the Assistant General Manager of Finance, Public 

Utilities Commission to apply for, accept, and expend $7,507,831 in 
FTA Section 9 operating assistance, $4,974,542 in FTA Section 9 
capital assistance, $25,000,000 in FTA Section 3 Fixed Guideway 
capital assistance, $12,400,000 in federal Surface Transportation 
Program/Congestion Management Air Quality capital assistance, 
regional, and $10,530,276 from state, regional, and local match 
funds such as State Transit Capital Improvement Funds, State Urban 
Rail Bond Funds, State Clean Air and Transportation Improvement 
Act Bond Funds, State Transit Assistance Funds, State 
Transportation Development Act Funds, Bridge Toll Net Revenues, 
Regional Measure One funds, Gas Tax Revenues, Transit Impact 
Development Fees, San Francisco Municipal Railway Improvement 
Corporation Funds, San Francisco County Transportation Sales Tax, 
Port of San Francisco Funds, Catellus Corporation Funds for the 
following Municiapl Railway projects: Operating Assistance, Muni 
Metro Turnback, Trolley Bus Purchase, Trolley Overhead 
Reconstruction: 14-MISSION, Muni Metro Accessibility 
Imporvement, Cable Car Vehicle Renovation, Light Rail Vehicle 
purchase, and Metro East Light Rail Vehicle Facility/Illinois Street 
Bridge. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

92-145 



RESOLUTION 
NO. 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0225 FM Authorizing the Assistant General Manager of Finance, Public 

Utilities Commission to commit $6,250,000 from the Transit Impact 
Development Fee as local match funds for the Muni Metro 
Turnback Project. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0226 FM Authorizing the Assistant General Manager of Finance, Public 

Utilities Commission to apply for, accept, and expend $14,788,500 
from 1993-94 State Transit Capital Improvement funds and 
$14,788,500 from such regional and local matching fund sources as 
Clean Air and Transportation Act of 1990 Bonds, State Transit 
Assistance funds, Transportation Development Act funds, AB 1 107 
funds, AB664 Bridge Toll funds, Regional Measure One Bridge 
Tolls, Transit Impact Development Fees, Transportation Sales Tax 
Revenues, and/or the San Francisco Municipal Railway 
Improvement Corporation funds for the above-listed Municipal 
Railway projects. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

Copies of the above resolutions are on file in the office of the 
Secretary of the Public Utilities Commission. 



Announcements 

President Chin reported that the Commission met in executive session immediately before 
this meeting and approved settlement in the case of Jerri Smock v. City and County of 
San Francisco, Superior Court No. 930-622. 

Commissioner Hardeman reported that he toured both the east bay and peninsula facilities 
of the Water Department with the General Manager and other staff. He reported that he 
attended the annual cable car bell ringing contest. Commissioner Hardeman also visited 
the site of the J&M line project on 19th Avenue with Municipal Railway staff and 
community representatives. He said that the community suggested planting grass in the 
right-of-way and staff agreed to look into it. 

Requests from the Commissioner 
Employee Passes and Vehicle Usag e 

Commissioner Jefferson requested copies of the applicable sections of the Memorandums 
of Understanding that relate to employee passes or use of City vehicles. 

THEREUPON, THE MEETING WAS ADJOURNED: 4:50 P.M. 



Romaine A. Boldridge 
Secretary 

92-146 






MINUTES 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 



REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

August 11, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



AUG 28 1992 

SAN FKA.vv-.o^O 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-147 



Call to Order: 2:05 p.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Micheal E. Hardeman 

On motion of Commissioner Makras, seconded by Commissioner Carson, the Minutes of 
the Regular Meeting of July 28, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted in executive session: 

92-0227 MR Approving settlement in the case of Strategic Organization Systems 

v. CCSF 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0228 MR Approving Contract Modifications 12 through 18 in the aggregate 

amount of $323,324.00 to Municipal Railway Contract No. MR-869 
Potrero Facility Rehabilitation. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0229 WD Approving Debit Contract Modification No. 9 in the amount of 

$80,107.00 to San Francisco Water Department Contract WD-2060, 
San Andreas Water Treatment Plant Expansion No. 2. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

92-0230 GM Approving the execution of an agreement between the City and 

County of San Francisco and San Mateo County Transit District 
(SamTrans) for an independent appraisal of Water Department 
(formerly Municipal Railway) right-of-way in San Mateo County. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 



92-148 



On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-023 1 MR Discontinuing and authorizing rerouting of a portion of the express 

route for line 82X-CalTrain Levi Plaza Express. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

92-0232 UEB Rejecting all bids and authorizing readvertisement of San Francisco 

Municipal Railway Contract No. MR-898, No. 14 Mission Line 
Trolley Overhead Reconstruction Project Phase A - Persia Avenue 
to Daly City Loop. 

VOTE: Ayes-Makras, Jefferson, Hardeman 
Noes-Chin 
Excused-Carson 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0233 UEB Approving the Cable and Conduit Agreement with Western Union 

ATS, Inc. governing removal of cables and conduit at the base of 
Market Street along The Embarcadero for construction of the Muni 
Metro Turnaround project. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0234 FM Authorizing the Assistant General Manager of Finance to request 

$750,000 in SFMRIC funds to prepare a legal defense against 
outstanding claims regarding the J-Line project. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 






Announcements 

President Chin reported that the Commission met in executive session immediately before 
this meeting and approved settlement in the case of Strategic Organization Systems v. 
CCSF, SMSC No. 350-629. 

Commissioner Hardeman reported that he and Commisioner Jefferson had toured the 
sewer tunnel project at the end of Sloat Boulevard to gain an understanding of how the 
Municipal Railway Turnback project will be done on The Embarcadero. He stated that he 
attended the signing of the contract with Alcatel for the improved signal system. 

President Chin announced that the workshop on Hetch Hetchy filtration and water supply 
and demand issues would be held Tuesday, August 18, 1992, at 9:30 a.m., at the Sunol 
Golf Course in Sunol, California. 



92-149 



Requests from the Commission 

Graffiti Remover 

Commissioner Makras inquired about the possibility of using a specific product for 
graffiti removal. In response to the information presented by staff regarding the product's 
Materials Safety Data Sheet, President Chin requested a report on the product approval 
process used by all City departments. 

>. 

Change Machines 

President Chin requested that staff move as quicky as possible on obtaining change 
machines in the Metro stations. 

Right of Way Appraisal " 

Commissioner Jefferson requested that the General Manager look into inclusion of the 
City's contracting requirements in the right of way appraisal contract and any subsequent 
contracts and that the General Manager advise the Commission whether these issues are 
appropriately dealt with prior to the Commission's consideration of further actions. 

Employee Passes 

Commissioner Jefferson requested an opinion from the City Attorney regarding "past 
practices" as it relates to Muni/PUC employee passes not covered by a Memorandum Of 
Understanding and what constitutes meet and confer within this context, and how far does 
it have to go if there is not agreement. 



THEREUPON, THE MEETING WAS ADJOURNED: 4:35 P.M. 



Romaine A. Boldridge 
Secretary 



MINUTES 



Sc 



.-- 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 

Mayor 

i 
REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

August 25, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



DO<~' IMITMW r>r- D y 

SEP 4 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



92-151 



Call to Order: 2:30 p.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Micheal E. Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner Hardeman, the 
Minutes of the Regular Meeting of August 11, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. . 






RESOLUTION 
NO. 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0235 WD Rescinding Resolution No. 92-0223; and accepting work performed 

under Water Department Contract No. WD-2067, approving debit 
Contract Modification No. 1 in the amount of $22,601.50; 
authorizing an extension of time for unavoidable delays of 48 
working days; and authorizing final payment in the amount of 
$20,184.60 to the Contractor, P & J Utility Company. 



VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 



On motion of Jefferson, seconded by Chin, the following resolution 
was adopted: 

92-0236 MR Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Municipal Railway totaling $143,500. 

VOTE: Ayes-Chin, Jefferson, Hardeman 
Noes-Makras, Carson 

On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

92-0237 MR Approving collection of charges for damanges for the month of June 

1992 against the Municipal Railway in the amount of $7,484. 10 and 
write off compromise reductions in the amount of $1,980.33, and 
collections against the Bureau of Light, Heat and Power in the 
amount of $7, 183.88. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 



On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

92-0238 WD Authorizing Bid Call for San Francisco Water Department Contract 

No. WD-2108, 8-inch Ductile Iron Main Installation in Presidio 
Avenue between California and Post Streets and in Post Street 
between Presidio Avenue and Scott Street. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

92-152 



On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

92-0239 WD Authorizing bid call for Water Department Contract No. WD-2130, 

Ventilation of Adit Structures. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: , 

92-0240 WD Authorizing bid call for Water Department Contract No. 2137, 

Hoisting Equipment at Various Pump Stations. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

92-0241 EC Authorizing the Bureau of Energy Conservation to apply for, accept 

and expend $50,000 in grant funding from the U.S. Department of 
Energy and the Urban Consortium (through its fiscal agent, the City 
of Chicago) to continue its energy management activities. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

92-0242 GM Requesting the Board of Supervisors approval to contract for 

security guard services for the Public Utilities Commission for 
1992-93. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0243 WD Approving Amendment No. 1 to Agreement between the 

Department of Water Resources and the City and County of San 
Francisco for the Construction, Operation and Maintenance of the 
Temporary Sunol Blowoff Turnout Within South Bay Aqueduct 
Right of Way. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0244 MR Authorizing the Municipal Railway to reroute line 

48-QUINTARA/24th STREET to operate current route to 24th 
Street and Hoffman Avenue, then right on Hoffman Avenue, 
continuing via regular route; subject to service on request only via 
the current route to 24th and Hoffman, then left on Hoffman, right 
on 25th Street, right on Fountain Street, and right on 24th Street to 
Hoffman, at which point the regular route would be resumed. 

VOTE: Ayes-Chin, Jefferson, Carson, Hardeman 
No -Makras 



92-153 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0245 MR Authorizing the Municipal Railway to reroute line 

48-QUINTARA/24TH STREET to operate in the outbound 
direction, between the hours of approximately 5:30 AM and 7:00 
PM weekdays, current route to 23rd Street and Utah Street, then left 
on Utah, right on 24th Street and crossing Potrero Avenue to resume 
the regular route on 24th Street. 

VOTE: Ayes-Chin, Jefferson, Carson, Hardeman 
No -Makras 



On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0246 MR Authorizing the Municipal Railway to join with other Regional 

Transit Association operators in providing (55) fifty-five free 
regional transit passes for unlimited rides on Bay Area transit 
systems, including the Municipal Railway, from November 1, 1992 
through October 31, 1993. 

VOTE: Ayes-Chin, Makras, Jefferson, Hardeman 
Absent-Carson 



On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0247 UEB Accepting the work performed under Hetch Hetchy Water and 

Power Contract No. HH-815R, Hetch Hetchy Security Lock System, 
as satisfactorily completed; approves Credit Contract Modification 
No. 1 in the amount of $7,810.23; authorizes an extension of time 
for unavoidable delays of two hundred and ninety-nine (299) 
calendar days; and authorizes final payment in the amount of 
$29,606.02 to the Contractor, Advanced Design. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0248 UEB Awarding Hetch Hetchy Water and Power Contract No. HH-80 1 , in 

the amount of $474,758.00 to George Reed, Inc., P.O. Box 548, 
Sonora, CA 95370, as the lowest responsive bidder. 

VOTE: Ayes-Chin, Makras, Jefferson, Carson, Hardeman 



Requests From the Commission 

J - M Platform & Trackway Improvement Project 

President Chin directed that staff meet with representatives from the neighborhood to 
discuss issues concerning the project. The format would be a committee of five people 
selected by the 19th Avenue Committee and five people representing the Municipal 
Railway, two of whom shall represent other organizations or areas affected by the 
project. A representative of the Mayor's Office and Commissioners Hardeman and 
Carson will sit in on the discussions. The committee shall report to the Commission at its 
September 22, 1992 meeting. The General Manager of Public Utilities shall convene and 
chair the first meeting and the Mayor's Office will seek to find a facilitator for the 
committee. 

92-154 



Announcements 

Hetch Hetchy Filtration 

President Chin announced that on August 18, 1992 the Commission participated in an all 
day workshop with persons from other water districts around the Bay Area regarding the 
issue of water quality and whether Hetch Hetchy water should be filtered. President Chin 
congratulated staff on conducting the workshop. 






THEREUPON, THE MEETING WAS ADJOURNED: 4:18 P.M. 



Romaine A. Boldridge 
Secretary 



92-155 



/y 



MINUTES 



PUBLIC UTILITIES COMMISSION 

CITY AND COUNTY OF SAN FRANCISCO 
/ 
Frank M. Jordan 



Mayor 

REGULAR MEETING 
Room 282, City Hall 

2:00 P.M. 
September 8, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUMENTS DEPT. 
SEP 22 W2 

fwj FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-156 



Call to Order: 2:10 p.m. 



Present: President Gordon Chin, Commissioner James D. Jefferson, Commissioner 

Patricia A. Carson, Commissioner Michael E. Hardeman 

Excused: Vice President Victor G. Makras 



On motion of Commissioner Jefferson, seconded by Commissioner Hardeman, the 
Minutes of the Regular Meeting of August 25, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 



RESOLUTION 
NO. 






On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0249 FM Requesting the Controller's concurrence in amendment of Rule 6, 

Section E, and Rule 7, Section A through D, Rules and Regulations, 
Public Utilities Commission Revolving Funds. 



VOTE: 



AYES - Chin, Jefferson, Carson, Hardeman 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0250 MR Requesting the Controller to allot funds and to draw warrants 

against such funds as are available in payment of claims against the 
San Francisco Municipal Railway totaling $329,000. 



VOTE: 



AYES - Chin, Jefferson, Carson, Hardeman 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0251 WD Requesting the Controller to allot funds and to draw warrants 

against such funds as are available in payment of claims against the 
San Francisco Water Department totaling $90,000. 



VOTE: 



AYES - Chin, Jefferson, Carson, Hardeman 



92-0252 



MR 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

Authorizing Bid Call for Municipal Railway Contract No. 
MR- 1029, H. Welton Flynn Motor Coach Facility Furnish and 
Install Automatic Transmission Fluid Tank. 



VOTE: 



AYES - Chin, Jefferson, Carson, Hardeman 



92-157 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0253 WD Authorizing bid call for Water Department Contract No. WD-2131, 

Install Permanent Work Platforms/Supply Division. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0254 MR Awarding San Francisco Municipal Railway Contract No. MR-897, 

Special Trackwork for San Francisco Municipal Railway 
Modifications to Geneva Yard and Shop in the amount of 
$1,167,000 to Stacy and Witbeck, Inc. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0255 PT Ratifying and approving the Non Civil Service and Temporary 

appointments and removals made by the General Manager for the 
month of July, 1992. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On the motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0256 GM Establishing a policy of charging fees for duplication of records; and 

adopting a Fee Schedule. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On the motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0257 UEB Awarding San Francisco Water Department Contract No. WD-2 1 36, 

Repaving of Street and Sidewalk Openings for the San Francisco 
Water Department for the Fiscal Year Ending June 30, 1993, in the 
amount of $1,371,819 to the low bidder, A Ruiz Construction 
Company and Associates, Inc.; and waiving the minor defects in the 
bid submitted by A. Ruiz Construction Company and Associates, 
Inc. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On the motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0258 UEB Authorizing the Utilities Engineering Bureau Manager to negotiate a 

professional services agreement for preliminary engineering 
services for the Hetch Hetchy Water Treatment Project with the 
Camp Dresser & McKee Team, for an amount not to exceed 
$1,000,000. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 



92-158 



On the motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0259 UEB Authorizing the Manager, Utilities Engineering Bureau, to execute 

Amendment No. 7 to Agreement CS-361 with Bechtel Corporation 
through December 31, 1992 in an amount not to exceed $649,837 
for professional services during the bid and award and preliminary 
advance construction phases of the MUNI Metro Turnaround 
project. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On the motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0260 UEB Authorizing the Manager, Utilities Engineering Bureau, to execute 

Amendment No. 2 to the Agreement with James W. Montgomery 
Consulting Engineering, Inc. for engineering services for the Sunol 
Valley Water Treatment Plant Improvements in an amount not to 
exceed $645,874. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On the motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0261 UEB Requesting the Controller to transfer $244,545 from the San 

Andreas Water Treatment Plant Expansion No. 2 project to the 
Sunol Valley WTP Improvement project; and authorizing the 
Manager, Utilities Engineering Bureau, to execute Amendment No. 
3 to the Agreement with James M. Montgomery Consulting 
Engineering, Inc. for engineering services for the Sunol Valley 
Water Treatment Plant Improvements in an amount not to exceed 
$244,545. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On the motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0262 UEB Authorizing the Manager, Utilities Engineering Bureau, to execute 

Amendment No. 1 to the Agreement with Gannett Fleming 
Engineers and Planners for engineering services for Islais Creek 
Fleet Maintenance Facility and Rehabilitation of the Existing Woods 
Fleet Maintenance Facility to extend the term of the contract to 
December 31, 1993. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 

On the motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0263 FM Authorizing the Director of Finance to request proposals for 

Placement Agent services in connection with the placement of a 
cross-border sale and leaseback transaction for the sixty articulated 
electric trolley buses. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 



92-159 



On the motion of Carson, seconded by Hardeman, the following 
resolution was adopted: 

92-0264 EC Authorizing the Bureau of Energy Conservation to circulate a 

Request for Proposal for a consultant to perform energy efficiency 
design review of municipal Capital Improvement Projects. 

VOTE: AYES - Chin, Jefferson, Carson, Hardeman 



REPORT OF THE GENERAL MANAGER 

Im pact of State budget on the 1992-93 PUC Budget 

Thomas J. Elzey, General Manager of Public Utilities, outlined the issues contained in the 
Mayor's Office memorandum regarding the PUC budget. The Mayor's Office requested 
PUC to reduce its budget by $15 million. They asked that the three departments, 
Municipal Railway, Water, and Hetch-Hetchy, prepare an organizational chart detailing 
the positions needed to assume the functions now performed by the PUC bureaus. The 
Mayor's Office believes that there is redundancy of functions in the structure of the 
Public Utilities Commission. They believe that 18 to 20 positions can be eliminated. The 
Mayor's Office is also asking that PUC reduce the number of positions earning $85,000, 
expand the span of control in the departments, look over work rules for possible savings 
and direct staff to review the Muni fare policy and to reduce Muni bus services to make 
up the deficit. 

Michelle Witt, Director, Bureau of Finance, also summarized the issues raised in the 
memo from the Mayor's budget staff. 

Mr. Elzey asked for guidance from the Commission on how to proceed to address the 
issue. Commissioner Jefferson directed staff to review the operational implications of 
implementing this proposal, to look at other possible alternatives to this scenario and to 
look at the implications of this proposal to the bureaus' ability to function. 

David Pilpel spoke and expressed his opinions about the proposed decentralization of the 
bureaus functions. He indicated that service cuts beyond $4-$6 million annualized is 
intolerable. 

Discussion of this item was continued to Friday, September 11, 1992 at 9:00 a.m. at a 
place to be determined. 

Courtesy Passes and Vehicle Use 

Discussion of this item is continued to the next Commission meeting to allow time for the 
Commission to review the City Attorney's opinion and the latest information provided by 
staff. Commissioner Jefferson requested an inventory of all vehicles for the next meeting. 

Resolution No. 92-0256 - Establishing a policy of charging fees for duplication of 
records; and adopting a Fee Schedule. 

David Pilpel requested that a separate copy of all materials presented to the Commission 
be available for public review on the Friday before Tuesday's meeting. He also requested 
that all correspondence listed in the summary sheets also be available. 

Commissioner Chin directed staff to make a copy of the meeting package available for 
members of the public to look at Monday before the Commission meeting. This copy will 
be a public review file and cannot be removed from the Commission office. 



*************************** 



92-160 



Resolution No. 92-0257 - Awarding San Francisco Water Department Contract No. 
WD-2136, Repaving of Street and Sidewalk Openings for the San Francisco Water 
Department for the Fiscal Year Ending June 30, 1993 to A. Ruiz Construction Company 
& Associates 

Lisa Brown of the City Attorney's Office advised that litigation was filed by Stacy & 
Witbeck as a result of their bid protest. Randall B. Smith, Counsel for Stacy & Witbeck, 
was present and he discussed the reasons why the contract should be awarded to Stacy & 
Witbeck and not A. Ruiz Construction, which focused on the procedures for 
implementing bid preferences. 



Resolution No. 92-0258 - Authorizing the Utilities Engineering Bureau Manager to 
negotiate a professional services agreement for preliminary engineering services for the 
Hetch Hetchy Water Treatment Project with the Camp Dresser & McKee Team. 

Resolution No. 92-0259 - Authorizing the Manager, Utilities Engineering Bureau, to 
execute Amendment No. 7 to Agreement CS-361 with Bechtel Corporation for the MUNI 
Metro Turnaround project. 

Resolution No. 92-0260 - Authorizing the Manager, Utilities Engineering Bureau, to 
execute Amendment No. 2 to the Agreement with James W. Montgomery Consulting 
Engineering, Inc. for the Sunol Valley Water Treatment Plant Improvements. 

Resolution No. 92-0261 - Requesting the Controller to transfer $244,545 from the San 
Andreas Water Treatment Plant Expansion No. 2 project to the Sunol Valley WTP 
Improvement project; and authorizing the Manager, Utilities Engineering Bureau, to 
execute Amendment No. 3 to the Agreement with James M. Montgomery Consulting 
Engineering, Inc. for the Sunol Valley Water Treatment Plant Improvements. 

Resolution No. 92-0262 - Authorizing the Manager, Utilities Engineering Bureau, to 
execute Amendment No. 1 to the Agreement with Gannett Fleming Engineers and 
Planners for engineering services for Islais Creek Fleet Maintenance Facility and 
Rehabilitation of the Existing Woods Fleet Maintenance Facility. 

Commissioner Jefferson asked staff to provide an update on actual MBE participation to 
date and the participation anticipated in the future on the following contracts: 

1. Camp Dresser & McKee 

2. Bechtel Corporation 

3. James W. Montgomery Consulting Engineering, Inc. 

4. Gannett Fleming Engineers and Planners 






Resolution No. 92-0263 - Authorizing the Director of Finance to request proposals for 
Placement Agent services in connection with the placement of a cross-border sale and 
leaseback transaction for the sixty articulated electric trolley buses. 

Michelle Witt, Bureau of Finance Director discussed how the cross-border lease works. 
Under the cross-border lease, the PUC would sell the trolley coaches it is procuring from 
Canada to a foreign company and then lease them from that company. Staff hopes to 
raise $2 million from the arrangement. Staff is working with financial advisers to issue a 
Request for Proposals to determine if there is enough interest in the financial community. 
Ms. Witt said that they are looking for alternative funding sources if the cross-border 
lease idea does not work. 

David Pilpel asked further questions regarding the cross-border lease. 

*************************** 
92-161 



PUBLIC COMMENTS: 

David Pilpel talked about staffing levels in Central Control. Mr. Elzey indicated he will 
discuss this issue with the unions in due time. 

Patricia Hester requested removal of the bus stop in front of her house. Johnny Stein, 
General Manager, Municipal Railway, stated that he would bring this up with the 
interdepartmental committee that handles such matters. 






THEREUPON THE MEETING WAS RECESSED TO FRIDAY, SEPTEMBER 11, 1992 
AT A PLACE TO BE DETERMINED: 4:46 P.M. 



Romaine A. Boldridge 
Secretary 



92-162 



MINUTES 



/ ^UBLIC UTILITIES COMMISSION 

CITY AND COUNTY OF SAN FRANCISCO nrt _, , 

DOCUMENTS DEPT. 

SEP 22 1992 



/ 

Frank M. Jordan 
Mayor 

RECESSED MEETING 
Room 228, City Hall 

9:00 A.M. 
September 11, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-163 



Call to Order: 9:17 a.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 






RESOLUTION 
NO. 

On motion of Commissioner Makras, seconded by Hardeman the following 
resolution was adopted: 

92-0265 Recommending measures for reducing the 1992-93 budget by $15 million. 

VOTES: AYES - Chin, Makras, Jefferson 
NOES - Carson, Hardeman 






IMPACT OF THE STATE BUDGET ON THE 1992-93 PUC BUDGET 
(Continued from the regular meeting of September 8, 1992) 

Thomas J. Elzey, General Manager, Public Utilities Commission, reported what occurred 
in the meeting with the Mayor with two Commissioners, three department heads and 
Finance Director Michelle Witt in attendance. He gave a brief overview of what was 
requested by the Mayor's office in regard to the PUC budget and the reorganization of the 
department. The Mayor's staff met with the three operating departments to discuss their 
organizational structures. The Mayor requested a $15 million reduction in the PUC 
budget and that we look at eliminating positions earning $85,000, look at changing work 
rules, review the Municipal Railway fare policy and change bus schedules. 

Johnny Stein, General Manager, Municipal Railway presented an organizational chart 
reflecting the changes he proposes to make if the Municipal Railway assumes the 
bureaus' functions. He identified $2 million in savings if his department absorbs the 
functions of financial management ($400,000), BMIS ($100,000), and Protective Services 
($150,000), privatizing claims ($900,000), reduce UEB contracts ($500,000) and 
reducing the amount of reproduction costs by changing the way they print bus schedules 
($100,000). 

Commissioner Jefferson stated that each department head should identify any regulatory 
impediments that will impact the ability to achieve these savings, for example MOUs and 
Civil Service Commission rules. 



92-164 



Anson Moran, General Manager, Hetch Hetchy, addressed cost savings and 
reorganization issues such as power, accountability, feasibility and level of integrity. The 
bureau structure gives power to the Commission and the PUC General Manager, and it 
allows the bureau heads to be appointed. Decentralizing some bureaus like BMIS would 
not be feasible, while it may be feasible for UEB which has a matrix structure by 
engineering function and department. In some cases where the function is located makes 
no difference, such as Reproduction. If Contract Compliance were to report anywhere 
else it would be severely compromised. The bureaus and departments have different 
objectives. Personnel and Finance both have integrity today. That may change if they are 
decentralized, especially in the areas of grants and bond covenants. Mr. Moran stated that 
there is some overlap of functions in Hetch-Hetchy and the bureaus, one example is the 
Bureau of Energy Conservation. He added that it would cost more money for Hetch 
Hetchy if they were to absorb some of the bureaus. 

Commissioner Makras indicated that the use of zero based budgeting is an approach to 
accomplish what the Mayor has asked PUC to do. He suggested to look first at the issue 
that PUC was asked to reduce its budget and the next thing to do is assess the areas where 
service can be reduced and have each department head defend those areas in terms of its 
necessity and effects on their respective departments. 

John Mullane, General Manager, Water Department, addressed some of the bureau 
functions the Water Department will be able to assume such as finance and personnel 
functions. These functions may jointly reside in Water and Hetch-Hetchy since Water 
and Hetch-Hetchy have the same types of reporting requirements. The management 
function of the Utilities Engineering Bureau can be assumed very easily. Mr. Mullane 
stated he agrees in concept with assuming the Bureau of Management Information System 
function but is concerned about the difficulty in removing the facility from its existing 
location. Health & Safety functions will be easy to assume. He stated that the proposals 
will work for the Water Department but the professional and technical level of expertise 
performed by the bureaus is irreplaceable. 

Michelle Witt, Director, Bureau of Finance, discussed the elements of the budget 
reduction proposal for the Public Utilities Commission. She identified five areas where 
savings can be achieved, namely, Administrative efficiencies, Equity Transfers, Labor 
Efficiencies, Service Reductions and Muni Fare Increase. 

Administrative Efficiencies 

Under administrative efficiencies, staff anticipate savings in bureau efficiencies from 
decentralizing and eliminating the bureau functions for a six month savings of $500,000, 
MUNI efficiencies ($900,000), security ($500,000) and reduce facilities security costs 
($100,000). 

Ms. Witt stated that in regard to MUNI efficiencies, they are looking at the possibility to 
charge four positions to grant funds and reduce ballpark bus services. Mr. Stein will 
present a proposal possibly cutting three or four employees in the superintendent level in 
the salary range of $85,000. 

Savings in security costs can be achieved by shifting security responsibility to the Police 
Department, reducing police patrol, and reducing the Bums Security Agency contract. 

Labor Efficiencies 

Ms. Witt discussed the $3.0 million savings in labor efficiencies and work rule changes, 
$1.5 million of which will be derived from deferring trust payment and $1.5 million from 
TWU premiums and allowances. The $1.5 million deferred trust payment will be paid 
back when the proof-of-payment plan is implemented. 



92-165 



Service Reductions 

The proposed service reduction plan is anticipated to generate $4.3 million in six months. 
Service reductions will involve eliminating community service lines, parallel service and 
stopping the OWL service. In this proposal, it has to be taken into account whether Muni 
has to do an EIR on the impact of this level of service reduction. 

MUNI Fare Increases 

Michelle Witt presented four scenarios to the fare increase and the revenues that can be 
generated. She said the savings are calculated assuming implementation on January 1st 
and without taking into consideration any reduction in service. 

Equity Transfers 

Under Equity Transfer, savings can be achieved contingent upon the Water Department's 
sale of land to the Olympic Club, the Water Department's capital deobligation from the 
Hetch Hetchy filtration project and recalculation of Hetch Hetchy 1992-93 power 
revenues. 



John Mullane discussed the process of the sale of land to the Olympic Club. By Charter, 
the Water Department has to put the land up for auction to generate a sale. The land is 
zoned as open space. John Mullane stated that staff anticipates completing the process 
during this fiscal year thereby realizing the revenue of $2.2 million this fiscal year. 

The $2.5 million proposed equity transfer from the Hetch Hetchy filtration project is one 
half of the funds from defunding the project. The difference the Water Department will 
retain as a surplus to cover any type of emergencies during the year. Tom Berliner of the 
City Attorney's Office spoke about the legal implications of this recommendation. He 
stated that there cannot be an equity transfer unless there is a surplus, and a surplus can be 
created if the revenue exceeds 125% of last year's operating costs. 

If the Water Department is directed to deobligate $5.0 million, they will have no money to 
fund emergency projects. 

The Hetch-Hetchy Department recalculated its power revenues for 1992-93 and were able 
to increase the estimates by about $5.0 million. Mr. Moran, General Manager, 
Hetch-Hetchy, said he will be able to contribute $2.0 million to the budget shortfall. He 
will retain the $3.0 million as contingency for drought risk. If Hetch Hetchy is asked to 
deobligate the full $5.0 million the only contingency plan is to stop existing capital 
improvement activities. 

Commissioner Makras discussed the options and the impact of the proposals presented to 
reduce PUC's budget by $15 million. He stated that he would like the departments to 
look at all areas of recommendations and determine whether these can be done within the 
budget time and whether savings can be achieved in this fiscal year. 



92-166 



Public Comments: 

David Pilpel discussed his comments about the budget cut proposals: i.e. consider a fare 
increase of $1.10 rather than service cuts; those areas that attempt to recover their costs 
should fully recover their costs; special events cost the City a lot and those costs should be 
recovered; provide a yearly Muni pass to adult, senior, disabled, and youth to encourage 
sustained ridership; other City- wide revenues should be tapped; capital projects that 
increase operating costs should be delayed; eliminate road service division; any work rule 
changes should be negotiated with the labor unions; reduce materials and supplies costs; 
and reduced work week. Commissioner Chin requested Mr. Pilpel to put these 
suggestions in writing. David Pilpel also said that the Hetch Hetchy and Water 
Department capital deobligation recommendations are imprudent and probably would not 
be approved by the Mayor. 

Fred Peterson of the Transport Workers Union Local 200, spoke about the reorganization 
and work rule changes. He said these are MOU issues and should be negotiated with the 
labor unions. 



Alice Fialkin of the Transport Workers Union Local 200, expressed her concern about the 
proposal to get rid of 15 line supervisors. She said PUC should organize and restructure 
at the top level. 

Jano Oscherwitz of Local 790, stated that PUC should review its overtime costs especially 
those rendered by administrators and should not layoff people who are actually doing the 
work. 

Ray Antonio of Local 250A expressed his opposition to all the proposals presented. 

Bobby Brown, President of the Transport Workers Union Local 250A, said he is in favor 
of the Municipal Railway taking back bureau functions as a streamlined organization. 

Chuck Richardson, Chief of Protective Services, announced his resignation to accept the 
Chief of Police position in the county of Monterey. He discussed various activities in 
Municipal Railway facilities and the volume of investigations Protective Services had 
undertaken. He stated that the Protective Services Bureau has continued to save the City 
in preventive security measures. He said it would be a big mistake if protective services 
is taken away from the General Manager of Public Utilities. 



Commissioner Chin summarized what was discussed. He said that he hoped that the labor 
unions will work with the Mayor regarding MOU and work rule issues He suggested that 
the Commission direct staff on how to proceed in responding to the Mayor's request. 

Commissioner Jefferson suggested that since the Mayor would like to see more savings in 
administrative efficiencies the response to the Mayor's request should include costs and 
savings in that aspect. He suggested that the Commission add $2.8 million from savings 
in the bureaus and Muni efficiencies and requested department heads to come up with a 
proposal detailing the positions that will be cut. 

Commissioner Hardeman stated that he liked the idea of selling property to the Olympic 
Club, he did not like the equity transfers from the Water Department and Hetch Hetchy, 
he was opposed to deferral of the Trust Fund payment and opposed to service cuts. 



92-167 



Commissioner Makras suggested that the Commission consider other cost saving 
measures such as: re-estimating the cost of fuel; removing the restrictions on liquor and 
tobacco advertisement; consider reducing management and supervision by 25% in those 
categories of four or more like positions; and eliminating travel without the approval of 
the Commission. 



Commissioner Makras moved and Commissioner Hardeman seconded, to recommend to 
the Mayor the following package: 

Sale of Water Department Land $2.2 million 

Defunding of the Hetch-Hetchy Filtration Project 5.0 million 

Recalculation of Hetch-Hetchy Revenues 5.0 million 

Reduction in Muni and PUC Administration 2.8 million 



Total $15.0 million 



Commissioner Carson spoke in opposition to the motion and stated that she believed the 
land was under valued. 



President Chin asked for an assurance from the Mayor's Office that if the City's $64 
million deficit is reduced that the PUC's portion would also be reduced. Teresa Serata, 
Budget Director for the Mayor, replied affirmatively. 

On the motion, Commissioners Chin, Makras and Jefferson voted aye, Commissioners 
Carson and Hardeman voted no. 



Commissioner Carson requested that the Mayor's Office provide the Commission with a 
preliminary response regarding the equity transfers. 

Mr. Elzey said a list of program items from the bureaus and the Municipal Railway will 
be provided to the Commission which will outline what positions are to be cut, the 
number of staff in those positions and the dollar amount associated with the cuts. 






THEREUPON THE MEETING WAS RECESSED TO TUESDAY, SEPTEMBER 15, 
1992 AT A PLACE TO BE DETERMINED: 1:45 P.M. 



ROMAINE A. BOLDRIDGE 
Secretary 



92-168 



1 



/M I N U 



TES 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

RECESSED MEETING 
Room 2C, City Hall 

2:00 P.M. 
September 15, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



DOCUMENTS DEPT. 
OCT 9 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 






92-169 



Call to Order: 2:20 p.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 






IMPACT OF STATE BUDGET ON THE 1992-93 PUC BUDGET 
(Continued from the recessed meeting of September 11, 1992) 

Thomas J. Elzey , General Manager, Public Utilities Commission, gave a recap of the 
Mayor's request to reduce PUC's budget by $15 million and the Commission's request to 
review the recommendation to transfer equities in the amount of $7.2 million from 
Hetch-Hetchy and Water Department and to look at the bureaus and propose adjustments 
that will accomplish a savings of $2.8 million. 

Mr. Elzey presented two proposals reflecting the Commission's directions. One package 
showed a proposed organizational structure creating new divisions, a Finance and 
Administrative Division, and a Utilities Engineering Division in addition to the 
Commission Secretary. 

Mr. Elzey presented the concept of the new Finance and Administration Division and 
suggested collapsing of Finance, BMIS, Contract Management and Personnel under one 
division. This proposal would save $3.5 million on an annual basis and would eliminate 
approximately 50 positions. The department's ability to continue processing documents 
on time will be impaired and it may jeopardize processing of grant applications when 
these positions are cut. In the Personnel Bureau, the Examinations Unit would be 
eliminated and two positions from the current Examination Unit would be shifted back to 
Civil Service through the work order process and several positions in the Equal 
Employment Opportunity unit would be eliminated. In the Bureau of Management 
Information Systems (BMIS), he proposed to contract that unit by downgrading one 
position and eliminating five positions. This would require shifting of system 
maintenance for the Vehicle Maintenance System back to the Municipal Railway. The 
Municipal Railway will use existing staff to support the operations. In the Contract 
Compliance unit, the proposal would eliminate one existing position and combine 
positions currently in the Utilities Engineering Bureau and the Municipal Railway. The 
Bureau of Health & Safety functions will be shifted to the Municipal Railway. Two 
positions will be eliminated from the current staff of five people. The Bureau of Energy 
Conservation function will be shifted to Hetch-Hetchy. In the Security and Protective 
Services unit, the proposal would downgrade one position and delete two others and 
reduce funding for the Burns Security Agency contract. The reproduction function would 
also be eliminated thereby eliminating services such as photography and printing of bus 
schedules, public notices regarding route changes, and job announcements. These 
printing jobs will have to be done somewhere else. 

The proposed Utilities Engineering Division would include project management, 
engineering and construction functions and would provide services to all operating 
departments. The management information services function of the Utilities Engineering 
Bureau will be allocated and shifted to the Bureau of Management Information Systems 
within the Utilities Engineering Division. The surveying and inspection functions will be 
transferred back to the Deputy General Manager. This proposal eliminates 23 positions 
and would mean delays and diminution of service in processing grant items and various 
documents. 

The proposal for the bureau restructuring will achieve a total annual savings of 
$3,185,120 in salary and benefits. 



92-170 



Johnny B. Stein, General Manager, Municipal Railway, presented the staff 
recommendations to the Commision that would achieve a $1.4 annual savings. The 
proposal would: eliminate the Community Affairs Division and shift its management to 
the General Manager of the Municipal Railway; eliminate telephone services to weekday 
shift of 8-5; reduce engineering staff; reduce staff in the Transportation division; and 
eliminate six positions in the Maintenance Division. Mr. Stein discussed the proposal's 
impact on the Municipal Railway's day-to-day operations. He suggested that he would 
like to prepare an alternative recommendation that will realize the same $1.4 million 
savings reported in the staff proposal. 

Commissioner Makras pointed out that when service reduction is proposed, we should 
consider how to better manage the system and at the same time provide fair and equal 
service to the public. Mr. Stein said there is a procedure they follow when there is service 
reduction. They consider the overall demand, ridership and parallel lines. He said this 
procedure was considered in developing the service cuts proposal. 

Commissioner Jefferson asked staff to elaborate on how restructuring the finance 
administration can jeopardize federal and state grants. He was concerned that with 
reduced staff, PUC may not be able to comply with federal and state regulations relating 
to grants which may result in the City losing these grants. Michelle Witt, Director of 
Finance, stated that there is a federal regulation concerning audits that requires the 
Municipal Railway to comply. There is also the need to comply with the City Charter's 
requirements related to audits. 

Commissioner Makras, in response to the proposed restructuring, said that he believes the 
result of restructuring the departments is uncertain. He suggested that the Commission 
proceed by reviewing each line item on the proposal, consider the functions to be 
eliminated and services to be reduced rather than jeopardizing the smooth operation that is 
already in place. 

President Chin agreed that the Commision ought to review the proposals in detail and in a 
broader context. He stated that there is a need to differentiate the issue of the budget 
reduction, where the $2.8 million savings is coming from, and the organizational 
structure. He stated that the Mayor did not ask the Commission to restructure the PUC 
but merely asked for organization charts of each operating department. He said the 
deliberation of the staff and the Mayor's office should continue in the context of the 
budget cycle in light of the timeframe that has been established. 

Commissioner Hardeman expressed his opinion that in the proposed organization there 
seems to be a shift of power from the departments to the General Manager. 

President Chin asked Teresa Serata, Co-Budget Director for the Mayor's Office, what 
would happen to the detailed departmental budget if additional revenues are identified 
after the budget is implemented by the Board of Supervisors. Ms. Serata responded that if 
additional revenues were realized, a department could ask to restore some of the cuts and 
this could be done through establishing a list of priorities for restorations. 

Commissioner Carson asked Ms. Serata which of the proposals she thought would be 
acceptable, or not acceptable, to the Mayor. Ms. Serata discussed the legal implications 
of the proposed equity transfer from the Water Department. With respect to the 
Hetch-Hetchy equity transfer, she stated that the $2.5 million is applicable although it is 
risky in view of the current drought situation. She said that the Mayor is concerned with 
the proposed sale of land to the Olympic Club. The Mayor's staff will discuss these 
matters with the City Attorney to see if these are viable sources of funds. Ms. Serata 
stated that the Mayor would favor service cuts instead of the $2.5 million Hetch Hetchy 
equity transfer. Ms. Serata indicated that the Mayor is cautious of fare increases and is 
concerned about raising the fares twice in this budget year. She further stated that in the 
event other revenues or options are realized they will reduce PUC's contributions. At this 
time they do not know of any revenues to rescue the City from the budget shortfall. 

Commissioner Jefferson asked the extent of flexibility on the proposed staff reductions. 
Ms. Serata indicated that she will talk to the Controller because the Controller was 
specific that he would like to see the position details of downgraded or eliminated 
positions to allow flexibility in position adjustments. These position details will still be 
reviewed by the Civil Service Commission. 



92-171 



John Mullane, General Manager, Water Department, expressed his concerns with the 
transfer of bureau functions without technical supervision. He is concerned about the 
transfer of the examination function back to the Civil Service Commission and losing the 
flexibility to fill vacancies timely because they have to compete with all the rest of the 
City departments. He is also concerned about the potential problem in audit compliance 
with a leaner finance section. He stated that the equity transfer is a less painful 
contribution to the $15 million deficit and it will have no adverse impact on the operations 
of the Water Department. 

President Chin asked whether the proposed savings to eliminate the examination unit 
would mean an increase in the Civil Service Commission budget. Mr. Elzey responded 
that two positions proposed for transfer will be work ordered to Civil Service but he did 
not have the opportunity to discuss the matter with the Civil Service Commission. 
Commissioner Makras stated this recommendation should not be considered without 
negotiating first with Civil Service. Andrea Gourdine, Manager, Bureau of Personnel and 
Training, stated that it was not originally recommended to work order these two positions. 

Andy Moran, General Manager, Hetch-Hetchy, addressed the impact of the Bureau of 
Personnel and Training reduction to Hetch Hetchy. He stated that he did not favor the 
transfer of the examination unit to Civil Service because it would slow down the 
appointment process. 

On the proposed sale of land, Commissioner Hardeman asked whether there is a way of 
giving priority to the existing tenant to buy the property. John Mullane responded that, 
legally, the sale has to be conducted by auction. 



PUBLIC COMMENTS: 

Norman Rolfe suggested exercising caution in implementing service cuts because it may 
result in losing ridership and increasing traffic activity in the city. He also suggested 
raising the general revenue by increasing gross receipts, property, hotel and corporate 
taxes. 

David Pilpel stated that the proposals presented were not responsive to the Mayor's 
request because they reduce functions. He spoke about the legal implications of reducing 
salaries. 

Bobby Brown, President, Transport Workers Union Local 250A, suggested looking at 
fare increases before service cuts. 

Carol Isen, Local 21, stated that the proposals were not responsive to the Mayor's 
request. She suggested that the Commission consider the approach to eliminate PUC, 
centralize Water and Hetch Hetchy as separate agencies and leave Muni as a stand alone 
transportation agency. 

Jano Oscherwitz of Local 790 stated that the positions recommended for cuts were people 
who are actually doing the work and not those people who are getting $85,000 as was 
directed by the Mayor. She suggested a line by line check of those positions. 



President Chin indicated his agreement with some of the statements by the public that the 
proposals were not responsive to the Mayor's request. He requested the departments to 
do an analysis of the functions of the bureaus and give comments about the bureau plan. 

Commissioner Jefferson asked if PUC could get a response from the Mayor concerning 
ideas PUC should be looking at with regard to the budget reduction issue. Commissioner 
Carson indicated that she did not know what would be acceptable to the Mayor and it 
would help if the Mayor could provide this input. 



92-172 



Ms. Serata stated that the Mayor's staff had met with the bureaus and departments and 
advised them to review their organizational structures. She stated that the Mayor is 
interested in pursuing the idea that the three operating departments be stand alone 
departments. Commissioner Jefferson commented that the departments assumption of the 
bureaus responsibilities is not something that the Commission or the Mayor should pursue 
in this budget, but that that it should be looked upon as a long term budget evaluation. 
Ms. Serata said they anticipated this to happen in the 1993-94 budget. 

Commissioner Jefferson suggested scheduling another meeting to review an alternative 
proposal from the Municipal Railway, look at any recommendations on the additional 
$2.5 million in place of the Hetch Hetchy equity transfer, vote on what will constitute the 
elements of the $2.8 million in administrative efficiencies, and look at alternatives to 
reduce the budget by either service reductions or a Muni fare increase. 

Commissioner Makras suggested including in the elements of the $2.8 million savings 
such areas as: review all supervisory positions throughout PUC and where there are four 
or more supervisors in the same category determine what cost savings will be achieved if 
supervision is reduced 25%; consider removing restrictions on liquor and tobacco 
advertising; eliminate beeper pay; eliminate emergency pay; freeze overtime pay; freeze 
equipment purchases; reduce use of City vehicles; and review the aspect of downgrading 
positions instead of firing people. 






THEREUPON THE MEETING WAS RECESSED TO THURSDAY, SEPTEMBER 17, 
1992 AT 9:00 A.M., AT A PLACE TO BE DETERMINED: 5:30 p.m. 



Romaine A. Boldridge 
Secretary 



92-173 



<a 



MINUTES 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

RECESSED MEETING 
Room 282, City Hall 

9:00 A.M. 
September 17, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



DOCUMFNTS DEPT. 
OCT 9 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



92-174 



Call to Order: 9:20 a.m. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 



A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 



On the motion of Jefferson, seconded by Makras, the following resolution 
was adopted: 

92-0266 Amending measures for reducing the 1992-93 budget by $15 million. 

VOTES: AYES - Chin, Makras, Carson, Jefferson 

NOES - Hardeman 



IMPACT OF THE STATE BUDGET ON THE 1992-93 PUC BUDGET 
(Continued from the meeting of September 15, 1992) 

George Krueger, Utilities General Counsel, outlined an opinion describing how the 
Commission may act with regard to transfer of funds from Hetch Hetchy and the Water 
Department. His opinion also sets forth the rules for fund transfers; i.e., how funds can be 
spent, and how a surplus, if created or existing can be transferred to the general fund. A 
surplus can only be transferred to the general fund if the surplus exceeds 125% of the 
operating budget. Mr. Elzey said the Commission can re-evaluate the proposals in light 
of the financial data and schedule of capital programs and determine if it is consistent 
with the City Attorney's opinion. 

Commissioner Makras suggested that staff re-evaluate the fund transfer proposal, 
scrutinize all capital projects, and set priorities of projects which should be funded. When 
a surplus is created, and if it exceeds the 125% criteria, a decision could be made to 
transfer that surplus to the general fund. 

Teresa Serata, Budget Director for the Mayor's Office, spoke about the status of the 
Mayor's review of the PUC's proposed organizational structure. She suggested that the 
Commission consider the organizational issue in time for the coming 1993-94 budget 
review. Ms. Serata stated that as they prepare their final recommendation to the Mayor 
they will consider the $2.8 million savings in efficiencies, either a combination of the 
PUC General Manager's recommendations and the Municipal Railway's 
recommendations, and possible savings resulting from the information requested by 
Commissioner Makras with respect to supervisor ratios and overtime costs. 

Johnny Stein, General Manager, Municipal Railway, presented his budget proposal and 
discussed its impact on the Municipal Railway's daily operations. His proposal totals to 
an annual savings of $1.4 million which will be achieved through eliminating or 
transferring some positions to grant funding sources. He stated that it is not certain that 
those positions recommended to be charged to grant funds will get funded. The proposal 
also included reducing the contract for engine rebuild services from $600,000 to $300,000 
by bringing the work in-house and deferring wheelchair overhauls to avoid maintenance 
costs this year, saving $50,000 in this year's budget. 



92-175 



Mr. Elzey stated that there is an opportunity to bring the Geary Boulevard Corridor Study 
in-house using a combination of Municipal Railway and City Planning staff. 
Commissioner Makras supported the idea and directed staff to work with the Department 
of City Planning and see how much expertise of the City Planning staff can be utilized 
and put out for bid any part of the work that cannot be done by either department. He 
stated that it is prudent to consider looking at one department to work with another 
department in order to save someone's job and still get the project completed. 

Commissioner Makras stated that the Utilities Engineering Bureau should be 
self-sufficient and should start charging fees to different projects to increase the overhead 
recovery rate under the 1992-93 budget. Richard Brandt, Manager, Utilities Engineering 
Bureau, said that there are some people working on a job that could be directly charged to 
the project. He said there are some positions being charged to the operating cost which 
cannot be charged to grant funding, such as, most management and supervisory positions. 

David Pilpel commented on the budget proposals. He suggested preparing an outline of 
objectives to maintain a high quality of service and decide how this objective can be 
funded. He stated that the proposal for the Water Department and the Municipal Railway 
puts the City in greater financial risks. He stated he did not oppose service reductions and 
fare increases. 

Carol Isen of Local 21, Professional and Technical Engineers raised the issue of the 
proposal to eliminate three transportation planner positions. 

Howard Straussner, Chair of the SF Group Transportation Committee, agreed with the 
Mayor's Fiscal Advisory Committee report. 

Walter Graze, Acting Manager, Health & Safety, spoke about the impact of the proposed 
changes in the Health and Safety division. 

Alice Fialkin of the Transport Workers Union, Local 200, suggested cutting positions at 
the management level. 

Jano Oscherwitz of Local 790, commented that there were no upper management 
positions recommended for cuts. She urged the Commission not to consider the budget 
recommendations. 

Carol Isen, representative of Local 21, opposed those engineering positions proposed to 
be cut. She suggested that a list of positions earning $85,000 be made available to the 
public. 

Ray Antonio, Transport Workers Union Local 250A, spoke about the impact of work rule 
changes. 

Lawrence Martin, International Representative, Transport Workers Union, stated that the 
union had no intention of reopening its contract if there is no money on the table. 

John Russo of the Bureau of Management Information Systems expressed his opposition 
to the proposed cuts in the bureau. 

Commissioner Jefferson moved and Commissioner Makras seconded to accept the bureau 
proposal with the following amendments: (1) there will be no downgrading of positions 
unless the positions are being significantly reduced in terms of scope and responsibility; 
(2) reinstate the two positions in Health and Safety; (3) allow the General Manager of the 
Public Utilities Commission and the Manager of the Utilities Engineering Bureau to have 
flexibility with respect to the organizational aspects of the Utilities Engineering Bureau 
and hold this issue in abeyance for the time being. 

The Commission voted 4-1 to adopt the bureau package as amended, with Commissioner 
Hardeman voting no. Commissioner Hardeman said that he did not favor the proposal 
because he felt that there should be more positions cut at the managerial level. 



92-176 



With respect to the Utilities Engineering Bureau, Commissioner Jefferson directed the 
General Manager of the Public Utilities Commission and the Manager of the Utilities 
Engineering Bureau, to work together and come up with a proposal to shift more costs to 
overhead and make the costs of capital projects reimbursable to UEB. 

On motion of President Chin, seconded by Commissioner Jefferson, the Commission 
voted to adopt the Municipal Railway package presented by the General Manager of the 
Municipal Railway and to reinstate the two Transit Information Clerks in the Telephone 
Information Center of the Community Affairs Division, in order to maintain seven-day 
transit information service to the public. Commissioner Makras reiterated that a seven 
day operation is necessary for the transportation system to run efficiently and to better 
serve San Francisco's tourism industry. 

Commissioner Makras stated that he would like to look at the middle management level to 
see if those positions can be downgraded to maintain the same number of workforce and 
avoid laying off people. Andrea Gourdine, Manager of the Bureau of Personnel and 
Training, stated that the Civil Service Commission will not permit downgrading of 
positions as long as the functions are not downgraded as well. 

Commissioner Jefferson suggested that the Commission should revisit the issue that 
Commissioner Hardeman is concerned about to find ways to get to the level of 
bureaucracy as part of the next budget review. 

Commissioner Carson asked Stuart Sunshine of the Mayor's Office, whether the Mayor 
will ask for an alternative proposal if one or any of the PUC's proposal is not 
satisfactory. Stuart Sunshine responded that he did not know whether the proposals will 
work. 



THEREUPON THE MEETING WAS ADJOURNED: 12:20 P.M. 



Romaine A. Boldridge 
Secretary 



92-177 



^ 



MINUTES 

y^PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 



REGULAR MEETING 
Room 282, City Hall 

2:00 P.M. 
/September 22, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 






Romaine A. Boldridge 
SECRETARY 

92-178 



DOCUMENTS DEPT. 
OCT 9 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



Call to Order: 2:10 p.m. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 



On motion of Commissioner Hardeman, seconded by Commissioner Jefferson, the 
Minutes of the Regular Meeting of September 8, 1992 and the Minutes of the Recessed 
Meeting of September 11, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 



RESOLUTION 
NO. 






On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0267 FM Authorizing the Assistant General Manager of Finance to apply for, 

accept, and expend $1,500,000 of FT A Surface Transportation 
Program capital assistance including the required local match funds 
to implement the Muni Fixed Facility Improvement Project. 

VOTE: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0268 FM Authorizing the Assistant General Manager of Finance, to seek a 

grant scope modification reducing the federal share of project cost 
in the Municipal Railway's Advanced Train Control System 
(ATCS) Project under FTA grant CA-03-0363. 

VOTE: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0269 FM Authorizing the Assistant General Manager of Finance to apply for, 

accept and expend $17,647,059 of FTA Section 3 capital assistance 
to purchase trolley coaches. 

VOTE: AYES - Chin, Makras, Jefferson, Carson, Hardeman 






92-179 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0270 UEB Directing staff to develop a revised design for Municipal Railway 

Contract No. MR-895 for the construction of the J-M Platform and 
Trackway Improvement Project in accordance with the concept 
presented to the Commission by the Facilitator of the special 
committee, consisting of approximately 200 foot center track with a 
wye at each end, to be located south of San Francisco State 
University and elimination of the north track. 

VOTE: AYES - Chin, Carson, Jefferson, Hardeman 

NOES - Makras 



On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-027 1 UEB Rejecting bid call for Municipal Railway Contract No. MR-895 for 

the construction of the J-M Platform & Trackway Improvement 
Project. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0272 FM Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Municipal Railway totaling $80,000.00. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Carson, seconded by Jefferson, the following 
resolution was adopted: 

92-0273 FM Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Water Department totaling $26,000.00. 

VOTE: AYES - Chin, Carson, Jefferson, Hardeman 

NOES - Makras 



On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0274 UEB Approving Contract Modification No. 19 in the amount of 

$397,955.00 to Municipal Railway Contract No. MR-869, Potrero 
Facility Rehabilitation, N. L. Barnes Construction Co., Inc., 
Contractor. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 



92-180 



On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0275 UEB Rejecting all bids received on July 28, 1992 for San Francisco 

Water Department Contract No. WD-2129, 12-Inch Ductile Iron 
Main Installation in Johnstone Drive, Medical Center Road, and 
Clarendon Avenue, and authorizes re-advertisement of this work as 
San Francisco Water Department Contract No. WD-2129R. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Hardeman, seconded by Chin, the following 
resolution was adopted: 

92-0276 MR Authorizing the General Manager of the Public Utilities 

Commission to negotiate an agreement with Wilbur Smith 
Associates for professional services to conduct the Bayshore 
Corridor System Planning Study, at a cost not to exceed $400,000. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0277 MR Approving the final San Francisco Municipal Railway Short Range 

Transit Plan and Capital Improvement Program for 1992-2001. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Makras, seconded by Carson, the following resolution 
was adopted: 

92-0278 MR Allowing members of the Armed Forces in uniform to ride 

Municipal Railway vehicles without payment of fares during Navy 
Fleet Week, October 10 through October 14, 1992. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0279 MR Setting the date, time and place for a public hearing to consider 

revisions to the Municipal Railway fare schedules and service 
adjustments. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0280 WD Stating an intent to declare as surplus to the Water Department's 

operating needs the parcel located in San Francisco and San Mateo 
counties, which totals 17.35 acres, pending discussion and further 
review of information with the Director of Property. 

VOTE: AYES - Chin, Makras, Jefferson, Hardeman 

NOES - Carson 



92-181 



On motion of Hardeman, seconded by Carson, the following 
resolution was adopted: 

92-028 1 WD Authorizing the General Manager of the Water Department to 

execute the renewal of the agreement with the East Bay Regional 
Park District at a cost of $30,000 for helicopter services for the 
prevention of fire and security trespasses on watershed lands in 
Alameda, Santa Clara, and San Mateo Counties for fiscal year 
1992-93. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Makras, seconded by Carson, the following resolution 
was adopted: 

92-0282 WD Authorizing the General Manager of the Public Utilities 

Commission to modify the Professional Services Agreement for 
legal counsel with Howard, Rice, Nemerovski, Canady, Robertson 
& Falk extending the term to an additional three years commencing 
with the Controller's certification date for an amount not to exceed 
$79,800.00 during FY 1992-93. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Chin, seconded by Jefferson, the following resolution 
was adopted: 

92-0283 WD Authorizing the General Manager of the Water Department to 

negotiate and execute a professional services agreement with CH2M 
HILL for an amount not to exceed $1,000,000 for the development 
of a Groundwater Master Plan. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0284 FM Amending PUC Resolution #92-0224, committing the San Francisco 

Public Utilities Commission to provide local match financing equal 
to 20% of the total Surface Transportation Program 
(STP)/Congestion Management and Air Quality (CMAQ) cost of 
projects identified in the PUC's FY 93 Federal Transportation 
Administration (FTA) Capital and Operating Assistance Grant 
Application. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted: 

92-0285 UEB Denying the protest by Samsung/Mergentime and upholding their 

disqualification from bidding on the Muni Metro Turnaround 
construction contract. 

VOTE: AYES - Chin, Makras, Carson, Jefferson, Hardeman 






92-182 



The Commission took the calendar out of order and discussed Items 8, 9 and 10 first and 
then proceeded to the report of the General Manager. 

Resolution No. 92-0270 - Directing staff to develop a revised design for Municipal 
Railway Contract No. MR-895 for the construction of the J-M Platform and Trackway 
Improvement Project. 

Resolution No. 92-0271 - Rejecting bid call for Municipal Railway Contract No. MR-895 
for the construction of the J-M Platform & Trackway Improvement Project. 

Don Birrer, facilitator for the special committee on the 19th Avenue Project, discussed the 
issues presented at the committee meetings, such as: safety (the platform was too narrow 
for handicap access); and, the railroad appearance the project will create in the 
neighborhood. He reported that the Committee had worked out a compromise to reduce 
the railroad appearance by using a center track rather than a pocket track. However, they 
did not actually arrive at a consensus. He recommended that the Commission reject the 
pocket track idea and request the Municipal Railway to redesign the project in a way that 
would accomplish the needs of the transit system and minimize the impact to the 
community. 

John Herlihy, Chairman of the 19th Avenue Coalition, discussed the concerns of the 
Coalition such as safety issues and overhead wires going across 19th Avenue. He stated 
that none of the platforms conforms with the Americans with Disabilities Act. He said 
that what the compromise design proposes is still a pocket track. He stated that he is 
opposed to the wye concept of a 200 feet long track because it will provide capacity to 
store cars. He said the coalition would favor crossover tracks over the center track. Mr. 
Figone of the Municipal Railway described the concept of how center tracks and pocket 
tracks work. He stated that the compromise plan proposed by Mr. Birrer gives the 
department more elements of operating flexibility than crossover tracks. The compromise 
center track will be located between the S.F. State and Junipero Serra with a double wye 
design to enable cars to turn in both directions. Ken Jew of the Utilities Engineering 
Bureau said that it will take an additional seven months to revise the design. 

President Chin commended Mr. Birrer, the staff and the neighborhood for their efforts 
regarding this project. President Chin mentioned the importance of the community's 
participation in the design process and discussion on the location alternative. Mr. Herlihy 
said the community will continue to communicate with the Public Utilities Commission 
and the Municipal Railway. 

Bobby Brown, President of the Transport Workers Union Local 250A, asked why 
operator restrooms were not in the project. Mr. ELzey stated that the revised plan is to use 
Chevron's facilities. Commissioner Jefferson directed staff to include Local 250A in the 
discussion of the design. 

On motion of Commissioner Jefferson, seconded by Commissioner Hardeman, the 
Commission voted 4-1 to direct staff to develop the design presented as the center track 
concept, eliminate the north track otherwise known as Stonestown track, and continue to 
meet with the Lakeside neighborhood to work towards reaching a compromise on those 
issues attendant to the project such as overhead wires and safety issues. Commissioner 
Makras voted no. He stated that he still sees the proposed center track as a pocket track, 
and that the Municipal Railway has not fully demonstrated the need for the project and 
has not met its mandate. 

On motion of Commissioner Makras, seconded by Commissioner Hardeman, the 
Commission voted unanimously to reject the bid call for the J-M Platform & Trackway 
Improvement Project. 






92-183 



REPORT OF THE GENERAL MANAGER: 



Status of the PUC 1992-93 Budget 

Thomas J. Elzey, General Manager, Public Utilities Commission, reported that after the 
Commission acted to reduce the budget, the Mayor made further reductions, rejected the 
equity transfers, and directed that the Commission hold hearings to cut service. The 
Mayor intends to transfer money from the Water Department to the Fire Department and 
to require that the department achieve a savings of $1 million through furloughs. 

Teresa Serata, Budget Director for the Mayor, was asked to comment on the Mayor's 
changes to the PUC's budget proposal. She explained the changes that she made on 
administrative efficiencies were reflective of positions at the $85,000 or senior 
management level as directed by the Mayor. She stated that the Mayor was unable to 
accept the equity transfer and lowered PUC's share in the budget shortfall to $9.38 
million. Furloughs were added. She stated that the Mayor will favor fare increases and 
service reductions to replace the equity transfers. 

Commissioner Makras asked Ms. Serata whether the Mayor will accept the equity transfer 
from Hetch Hetchy and the Water Department if PUC were to meet the 125% rule. Ms. 
Serata responded that they will have to consult with the City Attorney's Office along with 
the sale of land proposal. 

President Chin stated that PUC is obligated to state its best case in terms of the 
department's needs. He said he hopes to have a dialogue with the Mayor's office with 
regard to major budget issues such as: equity transfers, the land sale, the PUC's ability to 
go over position by position as long as the savings in administrative efficiencies is at the 
same level; the amount of the Muni fast pass increase and the service reductions. Ms. 
Serata stated that as long as the equity transfers will be considered as just a one time fix 
that the Commission takes responsibility to make up in the 1993-94 budget, she does not 
have any reservation in that respect. 

Public Comments: 

Linda Jofuku, of Local 21, expressed her concerns about the three 5212 Principal 
Engineer positions recommended for deletion from the budget. She suggested that the 
Commission look with more scrutiny the way things are funded and to review the 
accounting methods in order to preserve more positions. She said there are a large 
number of vacant positions in the budget. 

Michelle Witt, Director of Finance, discussed the impact of the Mayor's package to the 
processing and approval of grant applications. Andrea Gourdine, Manager, Bureau of 
Personnel and Training, spoke about the implications of the proposal to demote the A490 
position (Manager of Personnel & Training) to Senior Personnel Analyst (1272) which is 
a position used to manage a medium sized personnel operation. Other bureau managers 
who spoke about the impact of the Mayor's budget package were Richard Brandt, 
Manager of the Utilities Engineering Bureau; Hans Loffeld, Manager of the Bureau of 
Management Information System; and Kirk Lawson, Manager of Management Efficiency 
& Productivity, who spoke with respect to Health and Safety. 

Commissioner Jefferson moved to direct the staff to analyze the implications associated 
with the Mayor's proposed budget cuts and to communicate them to the Finance 
Committee of the Board of Supervisors during the budget hearing. Commissioner Makras 
seconded and the Commission approved the motion unanimously. Commissioner 
Jefferson directed staff to request an opinion from the City Attorney on how the 125% 
rule can be met to implement a fund transfer. 



92-184 



Commissioner Makras moved to direct staff to submit to the Commission a package 
listing capital projects that can be deobligated to meet the 125% rule and cover the equity 
transfer. The Commission will then vote on the deobligation of the capital projects. 
Commissioner Makras seconded and the Commission voted unanimously to approve the 
motion. 






Resolution No. 92-0279 - Setting the date, time and place for a public hearing to consider 
revisions to the Municipal Railway fare schedules and service adjustments. 

The Commission voted to set a public hearing on October 15, 1992 at 6:00 p.m. in the 
Board of Supervisors Chambers in City Hall to consider fare increases and service 
reductions. 



Resolution No. 92-0280 - Stating an intent to declare as surplus to the Water 
Department's operating needs the 17.35 acre parcel leased to the Olympic Club. 

Commissioner Carson stated that she did not believe that this sale is in the best interest of 
the City. She said that it gives the existing lease holder the exclusive right to bid and she 
thinks that a reserved price should be determined before putting it out to bid. Tom 
Berliner, Deputy City Attorney, clarified that the bid has to be within 90% of the 
appraisal. Commissioner Makras recommended that the Commission state its intent to 
declare the land as surplus and that staff prepare a sale package and come back to the 
Commission so they can look at it as a whole. 

Resolution No. 92-0285 - Denying the protest by Samsung/Mergentime and upholding 
their disqualification from bidding on the Muni Metro Turnaround construction contract. 

Marilyn Klinger, counsel for Samsung/Mergentime was present to protest the 
disqualification of Samsung/Mergentime from bidding on the Muni Metro Turnaround 
construction contract. Samsung/Mergentime failed to submit the required financial 
information for the prequalification process. Ms. Klinger contended that they were 
disqualified based on differences in the interpretation of the language in the RFQ. 

Angela Karikas of the City Attorney's Office outlined the reason of Samsung's 
disqualification from the bid process. The prequalification process required contractors to 
submit audited financial statements to make sure that the contractor is financially 
qualified to do the job. They were also given a reasonable time to comply with the 
requirements of the RFQ. 

Commissioner Makras moved to deny the appeal, seconded by Commissioner Hardeman. 
Commissioner Hardeman stated that the staff handled the process properly and that 
Samsung, up to the time of this meeting, has not met the requirements of the RFQ. 

Item No. 22 : Requesting the Public Utilities Commission to approve the list of 
prequalified contractors and authorize the UEC to solicit price bids on the Muni Metro 
Turn around contract from the prequalified contractors. 

This item was continued to the next regular meeting. 

Mr. Derek D. Wong of Dillingham Construction requested that the Commission not delay 
the approval of the qualified bidders. 






92-185 



Public Comment: 

David Pilpel suggested that PUC staff should work with the Department of City Planning 
on an environmental review with regard to the Muni service cuts. Mr. Elzey said they 
already have requested City Planning's opinion on that subject. 



THEREUPON THE MEETING WAS ADJOURNED: 7:05 P.M. 



Romaine A. Boldridge 
Secretary 



92-186 



f 1 " 



MINUTES 

PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

SPECIAL MEETING 
Room 282, City Hall 

2:00 P.M. 
September 29, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Jill R. Thompson 
ACTING SECRETARY 



DOCUMENTS DEPT. 
OCT 9 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



92-187 



Call to Order: 2:05 p.m. 



Present: Vice President Victor G. Makras, Commissioner James D. Jefferson, 

Commissioner Patricia A. Carson, Commissioner Michael E. Hardeman 

Excused: President Gordon Chin 



A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 



RESOLUTION 
NO. 






92-0286 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

Approving the revised budget proposal to reduce PUC's budget for 
FY 1992-93 for submission to the Board of Supervisors. 

VOTE: Makras, Jefferson, Carson, Hardeman 



92-0287 



On motion of Makras, seconded by Hardeman the following 
resolution was adopted: 

Directing all new automobiles recently purchased be returned and 
stored, and directing the General Manager to bring to the 
Commission a vehicle policy and a disposition plan for the cars, and 
giving latitude to the General Manager to implement this directive. 



92-0288 



On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

Rescinding Resolution No. 92-0279, designating October 15, 1992 
to hold a public hearing to consider possible amendments to the 
Municipal Railway Fare Schedule and/or possible reductions to 
Muni service. 






This meeting was a special call by the Mayor's Office for the Public Utilities Commission 
to act on the revised budget proposal. 

Commissioner Hardeman discussed his opinions about the responsibility of managing the 
Bureau of Protective Services since Mr. Chuck Richardson, Chief of Protective Services, 
is resigning. Mr. Thomas J. Elzey, General Manager, Public Utilities Commission, stated 
that they will shift the management of that operation to the Bureau of Management & 
Efficiency. Commissioner Makras requested Mr. Elzey to present a report on how to 
enhance the Bums security program and also review the costs of maintaining the services 
of the Bums security versus utilizing police forces. Mr. Elzey will provide the data at the 
next meeting. 



92-188 



The Commission discussed the proposed furlough program. Commissioner Makras 
suggested to start with a voluntary furlough program, and if the designated amount ($ 1 
million) is not reached, then to make furloughs mandatory across the board except for 
areas where it is not cost efficient. Commissioner Carson suggested a three-tiered 
approach to implement the furlough program. Commissioner Jefferson concurred with 
the idea but was concerned about implementing it across the board where the lower paid 
employees will be most affected. Commissioner Hardeman agreed to structure the 
furlough based on salaries. 

The Commission agreed to implement the furlough program on a tiered basis; exempting 
people earning less than $30,000 and those areas where double time and time and a half 
would be necessary to cover the work. The proposed tier structure will use $30,000 as the 
base and those employees making $85,000+ will take the maximum furlough. Mr. Elzey 
will do an analysis of the number of affected employees to determine how to generate the 
amount needed for furloughs and use the data to propose a furlough structure to the 
Commission. 

Teresa Serata, of the Mayor's Office, stated that the Employees Relations Division and 
the Mayor's office were to meet and confer with various unions on this proposed change. 
She stated that before the furlough program is implemented it will require approval of the 
Civil Service Commission. She further stated that no guidelines or limits have been set 
and she suggested to look at the designated dollars first. 

The Commission approved the revised budget proposal with an amendment to freeze the 
three 9139 Transit Supervisor positions. The revised package reduced PUC's budget by 
$9.87 million which incorporates the following elements: 

o $2.5 million from Hetch Hetchy 

o $2.5 million from the Water Department 

o $2.9 million Administrative Efficiencies & Personnel Cuts 

o $975,000 in Furloughs 

o $ 1 million transfer from the Water Department to the Fire Department 

AWSS 






Public Comments: 

Larry Martin, Transport Workers Union, suggested making the furlough program 
voluntary. He stated that the 9163 classifications are exempt since they already have 
three days included in their contract as excuse days without pay providing the manpower 
is in place to cover. He also stated that cutbacks in work time, such as the 9139 position 
would affect safety and security on the street and may affect the Clean, On Time Bus 
Program. 

Carol Isen, Local 21, stated that top people in A classes were being protected at the 
expense of lower level employees. She asked why UEB management are still charging to 
overhead and what was the outcome of the Muni Engineering positions charged to grant 
funds. 

Alice Fialkin, Transport Workers Union Local 200, suggested a freeze on the three 9139 
positions but to leave them in the budget. Mr. Johnny Stein, General Manager, of the 
Public Utilities Commission, stated that they already have requested the Bureau of 
Finance to defund these positions. 

William Taylor spoke about the elimination of his job. Michele Witt, Director, Bureau of 
Finance, stated that his position is not being deleted from the budget. 

James Bryant, Local 790, opposed the layoffs and expressed his concern about the 
direction of the Commission if no agreements are reached with the various unions on the 
furlough issue. He suggested that the furlough be done equally among the workers. 



92-189 



Commissioner Makras brought up three issues such as; elimination of on-call pay across 
the board, freezing of overtime, and use of City vehicles. He recommended that the 40 
new automobiles recently purchased be returned and put in storage and directed the 
General Manager of the Public Utilities Commission to report back to the Commission 
with a plan for the disposition of those cars and also provide a car policy. Commissioner 
Hardeman emphasized that all new vehicles except for one were approved by the prior 
Commission. 

Commissioner Jefferson felt the need to establish policy and procedures on the use, 
purchase and maintenance of vehicles in the future but also recognized the need to take 
actions with regard to vehicles that are now allocated in the field. He suggested that the 
Commission direct the General Manager of the Public Utilities Commission to provide the 
inventory of vehicles as he previously requested. He also suggested that if there are 
surplus cars, to consider transferring them to other City departments, such as the Fire 
Department, who may have the need for additional vehicles. 

The Commission unanimously voted to direct the PUC General Manager to provide an 
updated inventory of new vehicles, store the new vehicles, reassign old vehicles to staff 
and evaluate the current usage of those vehicles and to give latitude to the PUC General 
Manager to implement this directive in a manner that does not jeopardize the operations 
of the departments. Mr. Elzey stated that after the evaluation process should it be 
necessary to reassign the vehicles back into the fleet, the Commission will be informed. 

The Commission set the next two regular meetings to resolve a final policy on the use of 
City vehicles. If a conclusion is not reached, the Commission will convene an executive 
session to deal with this matter. 

John Mullane, General Manager, Water Department, discussed his concerns regarding 
standby pay and overtime pay. He stated that if standby pay was cut there was no 
guarantee that employees would respond in times of emergencies. He stated that he had 
opened discussions with the plumbers union regarding beeper pay. With regard to 
overtime, Mr. Mullane stated that he handled abuses as they are brought to him, and he 
did not wish to jeopardize the entire operation because of a handful of abusers. 

The discussion of the standby and overtime issues was continued to the next meeting. 
The Commission also directed the PUC General Manager to provide a quarterly report on 
overtime utilization which will include data such as: how much overtime was used, and 
the purpose of the overtime work. 

The Commission voted unanimously to rescind the resolution passed at the Commission 
meeting of September 22, 1992 which set a date and place to hold a public hearing to 
consider Muni fare increases and service reductions. 



THEREUPON THE MEETING WAS ADJOURNED: 3:30 p.m. 



Jill R. THOMPSON 
Acting Secretary 






92-190 



72. 



MINUTES 

PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

October 13, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUMFMT° ^T. 
OCT 23 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-191 



Call to Order: 2:10 p.m. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 



On motion of Commissioner Hardeman, seconded by Commissioner Jefferson, the 
Minutes of the Recessed Meetings of September 15, 1992 and September 17, 1992, the 
Minutes of the Regular Meeting of September 22, 1992, and the Minutes of the Special 
Meeting of September 29, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 

On motion of Makras, seconded by Hardeman, the following 
resolution was adopted in executive session: 

92-0289 BF Approving settlement in the case of Gertrude Esser v. CCSF et al., 

Superior Court No. 938-742. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Chin, seconded by Jefferson, the following resolution 
was adopted in executive session: 

92-0290 BF Approving settlement in the case of Anthony Kent v. CCSF et al., 

Superior Court No. 927-1 14. 

VOTES: AYES - Chin, Carson, Jefferson 

NOES - Makras, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0291 BF Authorizing the Assistant General Manager of Finance to apply for 

a grant amendment to FTA Grant CA-90-X422, revising the project 
scope to include acquisition of 700 Pennsylvania as a replacement 
site for the 24th and Utah shops. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 



92-192 



On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, the following resolution was adopted: 

92-0292 BF Acknowledging that a formal, duly noticed public hearing was held 

on October 13, 1992, on the subject of the Municipal Railway's 
FTA Section 9 operating assistance of $7.6 million for FY 93. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0293 BF Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Municipal Railway totaling $192,046.60. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0294 BF Approving collection of charges from miscellaneous debtors for the 

months of July and August 1992. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0295 UEB Authorizing bid call for Hetch Hetchy Contract No. HH-832, San 

Joaquin Pipeline No. 2, Repair Mortar Lining, Segment III. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0296 UEB Authorizing bid call for Hetch Hetchy Water and Power Contract 

No. HH-833, Trolley Pole Replacement Project. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 






92-193 



On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0297 UEB Authorizing bid call for San Francisco Water Department Contract 

WD-2140, Backfilling of Pipe and Miscellaneous Repairs. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0298 MR Accepting the work performed under Municipal Railway Contract 

No. MR-1019, Presidio Shop - Hydraulic Lifts Replacement, as 
satisfactorily completed; approving Contract Modification No. 2 in 
the amount of $4,897.85; authorizing an extension of time for 
unavoidable delays of 280 calendar days; and authorizing final 
payment in the amount of $55,280.50 to the Contractor, Petroleum 
Engineering, Inc. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0299 UEB Approving Debit Contract Modification No. 1 1 in the amount of 

$119,796.00 to San Francisco Water Department Contract 
WD-2060, San Andreas Water Treatment Plant Expansion No. 2; 
Contractor: S.J. Amoroso Construction Co., Inc./Verrett 
Construction Company, Inc. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0300 PT Approving non Civil Service and temporary appointments and 

removals ordered by the General Manager of the Public Utilities 
Commission. 

VOTES: AYES - Chin, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0301 MR Authorizing the General Manager of the Public Utilities 

Commission to execute an agreement with Wilbur Smith Associates 
for professional services to conduct the Bayshore Corridor System 
Planning Study, at a cost not to exceed $400,000. 

VOTES: AYES - Chin, Makras, Carson, Jefferson 

ABSENT - Hardeman 



92-194 



On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0302 MR Authorizing the General Manager of the San Francisco Municipal 

Railway to execute a revenue sharing/transfer agreement with the 
Peninsula Corridor Joint Powers Board, with full reimbursement to 
the Municipal Railway of the joint single trip ticket at the prevailing 
adult fare. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0303 WD Authorizing the General Manager of the Water Department to 

execute a Memorandum of Understanding with the County of San 
Mateo for the purpose of extending and managing the Public 
Recreation Trails System on the Peninsula Watershed Lands. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

ABSENT - Makras 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0304 HH Authorizing the General Manager of the Public Utilities 

Commission to execute Modification No. 6 to the agreement with 
Brian E. Gray, Attorney at Law for legal services, increasing the 
amount of the contract by $18,000, and extending the term of the 
contract to December 31, 1995. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0305 HH Authorizing the General Manager of Hetch Hetchy Water and 

Power to execute the Third Amendment to the agreement with 
Murray, Bums and Kienlen, Inc. for professional engineering 
services, and extending the term of the contract to December 31, 
1995. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0306 HH Directing the City Attorney to amend and assign the Commission's 

contract for legal services with the law firm of Vinson & Elkins to 
Metzger, Hollis, Gordon & Mortimer with a contract amount not to 
exceed $399,000, less any money owed to Vinson & Elkins. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 



92-195 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0307 HH Authorizing the General Manager of the Public Utilities 

Commission to execute agreements with Hooper, Hooper Owen and 
Washington & Christian for lobbying services with a contract term 
of December 3 1 , 1992 and retainers not exceeding $45,000, plus 
$5,000 for expenses, for Hooper, Hooper Owen, and $18,000, plus 
$2,000 for expenses, for Washington & Christian. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0308 HH Authorizing the General Manager of the Public Utilities 

Commission to execute a Third Amendment to the Professional 
Services Agreement with Peter Moyle, Ph.D. to provide professional 
services on matters related to the Bay-Delta Hearings, extending the 
contract term to December 31, 1995. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0309 HH Authorizing the General Manager of Hetch Hetchy Water & Power 

to modify and execute the Fourth Amendment to the agreement with 
Jackson Research Project (JRP) to increase the contract amount by 
$38,000, for the total funding not to exceed $432,240, and 
authorizing extension of the contract term until December 31, 1995. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0310 UEB Approving the list of prequalified contractors and authorizing the 

Utilities Engineering Bureau to solicit from these contractors price 
bids on the MUNI Metro Turnaround construction contract. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 

On motion of Makras, seconded by Jefferson, the following 
resolution was adopted: 

92-031 1 BEC Authorizing the Bureau of Energy Conservation to apply for, accept, 

and expend grant funds up to a maximum of $100,000 for the 
purpose of preparing a comprehensive Local Energy Shortage 
Response Plan (LESRP) for the City and County of San Francisco. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 



92-196 



On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-03 12 BF Authorizing execution of a full funding grant agreement with the 

Federal Transit Administration for the Municipal Railway Metro 
Turnback Project. 

VOTES: AYES - Chin, Makras, Carson, Jefferson, Hardeman 



*************************** 



Announcement: 

President Chin announced that the Commission met in executive session immediately 
before the regular meeting and approved settlements in the case of Gertrude Esser vs. City 
and County of San Francisco, and the case of Anthony C. Kent vs. City and County of 
San Francisco. 



New Business: 

Commissioner Hardeman moved to call a special meeting on Thursday, October 15, 1992 
at 9:00 a.m. to discuss the tenure of the General Manager of the Public Utilities 
Commission. Commissioner Carson seconded. On the motion, Commissioners 
Hardeman, Carson and Makras voted aye, President Chin and Commissioner Jefferson 
voted no. 

Commissioner Makras requested the appropriate departments to provide to the 
Commission a list of houses rented out by PUC including their description, the size of the 
house, and the rental amount. 






Report of the General Manager: 

Thomas J. Elzey, General Manager, Public Utilities Commission, submitted a 
memorandum to the Commission discussing the current status of the review of 
automobile use in the Public Utilities Commission. Mr. Elzey stated that he will provide a 
complete inventory of automobiles and the disposition of these automobiles at the next 
scheduled meeting. He will also provide the policy governing the use of automobiles at 
that time. 

Johnny Stein, General Manager, Municipal Railway, discussed the issue of the reliability 
of the LRV fleet and the necessity to replace the vehicles. Phil Adams, Deputy General 
Manager, discussed the problems and the actions taken by staff to keep the system 
operating. Commissioner Makras expressed his concerns about whether the Municipal 
Railway had planned for, and budgeted for, major vehicle overhauling. Mr. Adams stated 
that the replacement cost was identified in the operating budget but was funded through 
an alternative funding source. 

President Chin requested staff to submit a detailed written report on the actual amount of 
overtime used for the LRV fleet versus the amount originally planned. 

Phil Adams, Deputy General Manager, Municipal Railway, reported on the continuing 
success of the Clean Bus Program. 



92-197 



Public Hearing - Resolution No. 92-0291 : Authorizing the Assistant General Manager of 
Finance to apply for a grant amendment to FTA Grant CA-90-X422, revising the project 
scope to include acquisition of 700 Pennsylvania as a replacement site for the 24th and 
Utah shops. 

Michelle Witt, Director, Bureau of Finance, discussed the reasons behind the change in 
the project scope. Ms. Witt stated that the acquisition of 700 Pennsylvania was 
considered as an alternative site because of the delay in the acquisition of the Islais Creek 
property as a replacement site for the 24th and Utah shops. She further stated that 700 
Pennsylvania is for sale and provides an already existing structure. 

Commissioner Hardeman moved to adopt the resolution and Commissioner Jefferson 
seconded. President Chin directed staff to provide information on the cost/benefit of the 
scope change and its impact on the operations. 

David Pilpel stated that he opposed the amendment and was concerned that this change 
will just facilitate the building of a parking garage for the General Hospital at the 
Municipal Railway's expense. Mr. Elzey stated that he had discussions with the Mayor's 
Office and the Parking Authority about this matter. He emphasized that the acquisition of 
700 Pennsylvania will facilitate the consolidation of shop functions and will create more 
efficient shops. Michelle Witt clarified that the Department of Parking and Traffic will 
pay the Municipal Railway $2 million for the 24th and Utah property. 

Public Hearing - Resolution No. 92-0292 : Acknowledging that a formal, duly noticed 
public hearing was held on October 13, 1992, on the subject of the Municipal Railway's 
FTA Section 9 operating assistance of $7.6 million for FY93. 

David Pilpel asked about the status of the change machines. Johnny Stein responded that 
there are still some areas that have not been resolved regarding the change machines. The 
machines which had been selected do not conform to the new Americans with Disabilities 
Act. 

Samuel Ganczaruk stated that the 24th and Utah building is over 95 years old and is not 
seismically sound. He also shared some ideas about the change machines. 

James Bryant, Local 790, stated that any change in the duties of Station Agents is a meet 
and confer issue. There are still a number of problems which need to be resolved, such as 
weekend service and the inconsistency in providing manpower resources. He said that he 
had written the Municipal Railway regarding the status of the change machines and he has 
not yet received a reply. 

Resolution No. 92-0301 : Authorizing the General Manager of the Public Utilities 
Commission to execute an agreement with Wilbur Smith Associates for professional 
services to conduct the Bayshore Corridor System Planning Study. 

Commissioner Jefferson requested that staff plan a workshop to provide an opportunity to 
discuss the scope of work in greater detail before the consultant actually begins work. 

Item No. 14 : Declaring that the parcel located in San Francisco and San Mateo counties, 
which totals approximately 17.35 acres, is surplus to the Water Department's operating 
needs, and authorizing the Director of Property to prepare necessary- legislation for 
enactment by the Board of Supervisors and to conduct the sale of the subject property at 
public auction. 



92-198 



Christine Morioka of the Water Department discussed the procedures under which the 
sale of the land currently leased to the Olympic Club will be conducted: (1) the Director 
of Property determines and confirms with the Department of City Planning that the sale of 
the land conforms with the master plan; (2) a written notice is sent to other City agencies 
to determine if the land is usable to them; (3) legislation is forwarded to the Board of 
Supervisors to permit the sale of the land at an auction and establish the minimum bid; 
and (4) confirmation of auction results by the Board of Supervisors and close of the sale. 

Ms. Morioka stated that the sale of the land is in conformity with the master plan based 
upon a letter from the Department of City Planning in 1990, which was recently 
confirmed with the City Attorney's Office. She said that the Director of Property does 
not anticipate any agency could have a use for the property because of the fact that the 
property is zoned as an open space area. President Chin asked about the Department of 
Recreation & Park's hen on the property. Ms. Morioka pointed out that the discussions 
were on the surface rights vs. underground rights and involved Lake Merced having the 
restrictions. Ms. Morioka stated that the Department of Recreation and Park could still 
communicate its interest on the property through the Director of Property. The 
Department of Recreation & Park, or any agency interested in the property, would be 
required to describe how they intended to use the land and that the use conforms with the 
master plan. Also they must show that they can afford to maintain the property. 

Commissioner Jefferson requested that the Commission be advised as to how the value of 
the property was established. Commissioner Makras stated that the property was valued 
at $2.2 million which he believed to be an adequate appraisal. Commissioner Carson 
stated she would like to meet with the Director of Property in an executive session to 
review the documents included in the appraisal. 

The item was continued to the next regular meeting to provide an opportunity for the 
Commission to hold an executive session with the Director of Property. 

David Pilpel expressed his concerns regarding the process of the sale and the time frame. 
He stated that the Department of Recreation & Park may be interested and could delay the 
process. He further stated that any revenue from the sale should go to the Water 
Department's general fund. 



Public Comments: 

David Pilpel expressed his concerns about such items as cellular phones, beepers, and 
pagers afforded to some employees. He suggested that the budget plans for next year 
should be discussed earlier. He discussed his concerns about the LRV fleet. 

Samuel R. Ganczaruk complimented Mr. Johnny Stein, General Manager, and Kathy 
Gilbert, Deputy General Manager, of the Municipal Railway for improving service on the 
33 Balboa line. He suggested that Community Affairs telephone operators provide 
information regarding schedule changes since bus schedules will no longer be printed. He 
also suggested that the Municipal Railway review the schedule of owl service and various 
lines on the Van Ness corridor to even out service. 



if:************************** 



THEREUPON, THE MEETING WAS ADJOURNED: 4:05 P.M. 



Romaine A. Boldridge 
Secretary 



92-199 



(11' 



MINUTES 

PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

CSPECIAL MEETING 

Room 287, City Hall 

9:00 AM. 

XDctober 15, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUM^'"^ ~^"~ 
OCT 23 1992 

SAN FRANCIS T ) 
PUBLIC LIBRA*/ 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 






Romaine A. Boldridge 
SECRETARY 

92-200 



Call to Order: 9:05 a.m. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 






President Chin stated that at the October 13, 1992 meeting, the Commission voted to hold 
an executive session on the tenure of the General Manager. A public hearing was 
requested by the General Manager. Subsequent to that, the General Manager requested an 
executive session. President Chin adjourned the meeting to an executive session at 9:06 
a.m. 

At 9:50 a.m. President Chin reconvened the meeting. 

President Chin read the following prepared statement: 

"The Public Utilities Commission has just met in Executive 
Session. As any Commission, we as Commissioners (individually 
and collectively) may disagree from time to time on particular 
PUC issues and decisions made. However, there were no 
accusations or charge, shared at our meeting regarding the 
performance of the General Manager and the issue of the General 
Manager's performance is not an issue of concern to the 
Commission. 

The Commission decided unanimously to take no action regarding 
the tenure of the General Manager of the Public Utilities 
Commission." 



Thereupon the meeting was adjourned: 9:51 a.m. 



Romaine A. Boldridge 
Secretary 






92-201 



A 



MINUTES 



'1V 



p 



UBLIC UTILITIES COMMISSION 



CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 

2:00 P.M. 

October 27, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUM pK, " rQ nnpT. 
NOV 9 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



DOCUMENTS DEPT. 
\\ 6 1992 

SAN PRtfMNMJl 



92-202 



Call to Order: 2:00 p.m. 

Present: Vice President Victor G. Makras, Commissioner James D. Jefferson, 

Commissioner Patricia A. Carson, Commissioner Michael E. Hardeman 

Excused: President Gordon Chin 

Vice President Victor Makras presided. 

On motion of Commissioner Jefferson, seconded by Commissioner Carson, the Minutes 
of the Regular Meeting of October 13, 1992 and the Minutes of the Special Meeting of 
October 15, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0313 MR Approving January 1, 1993 as start date to implement the Municipal 

Railway's On-Time Rebate Program. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0314 BF Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Municipal Railway totaling $17,000.00. 



VOTES: 



AYES - Makras, Carson, Jefferson, Hardeman 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0315 UEB Accepting the work performed under Hetch Hetchy Water and 

Power Contract No. HH-827, Moccasin Afterbay Improvements, 
approving Credit Contract Modification No. 1 in the amount of 
$2,808.94; authorizing an extension of time for unavoidable delay 
of 53 calendar days; and authorizing final payment in the amount of 
$4,417.28 to the contractor, Cunningham & Sons, Inc. 



VOTES: 



AYES - Makras, Carson, Jefferson, Hardeman 



92-203 



On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0316 GM Approving the Second Amendment to the Agreement between the 

City of San Francisco Public Utilities Commission and Harding 
Lawson Associates, for environmental consulting services, to 
increase the total spending authority from $600,000 to $1,100,000 to 
provide funding for toxics remediation work at the Municipal 
Railway's 24th and Utah site. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0317 WD Amending the lease agreement between the City and County of San 

Francisco, as Lessor, and Kollreal, as lessee, for 2.27 acre portion of 
Water Department lands located adjacent to 550 Weddell Drive, 
Sunnyvale, California, by reducing the leased area from 2.27 acres 
to 1.10 acres and proportionately reducing the monthly rent from 
$1,728 to $837.86, effective January 1, 1993. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0318 WD Approving the terms and conditions and authorizing the execution 

of the lease of approximately .71 acres of land located in Santa 
Clara County adjacent to 531 Weddell Drive, Sunnyvale, California, 
to the Roman Catholic Bishop of San Jose, as Lessee, for an initial 
term often (10) years, commencing on January 1, 1993 and 
terminating on December 31, 2002, with four 5-year options, at an 
initial rent of $10,200 per year. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0319 WD Requesting the transfer of $1,100,000 from Fund 32-891 Project 

103-01 Main Replacements to Fund 32-891 Project 104-01 Service 
Renewals from the proceeds of 1991 Water Revenue Bonds. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0320 WD Authorizing the General Manager of the San Francisco Water 

Department to amend the professional service agreement with 
EDAW, Inc. to perform Phase JJ of the Watershed Management 
Plans/Program Environmental Impact Reports Project at a cost not 
to exceed $750,000, bringing the current contract amount to 
$1,080,000. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 



92-204 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0321 UEB Authorizing the Manager of the Utilities Engineering Bureau to 

execute an amendment to the Professional Services Agreement with 
Foster- Jordan Associates, for construction support services, in the 
amount of Four Hundred Thousand Dollars ($400,000.00), thereby 
increasing the total fee to One Million Seven Hundred Thousand 
Dollars ($1,700,000.00). 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0322 UEB Awarding the San Francisco Water Department Contract No. 

WD-2134, CDD Summit Pump Station Standby Generator and 
Related Work, in the amount of $395,020.00 to Cresci Electric Inc., 
as the lowest possible bidder. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 






New Business : 

President Makras discussed the list of housing facilities rented out to employees. He 
stated that the rental rates for these facilities were very low and he was concerned that the 
City does not recover its costs from the rentals. He made a motion to direct staff to 
provide the Commission with the current market rental rates for all of the housing 
facilities and to provide recommendations on the manner of implementation to increase 
the rentals to market rates. Also, staff may include recommendations for discounted rates 
to encourage City employees to live or continue living close to their worksites. 
Commissioner Jefferson seconded. John Mullane, General Manager of the Water 
Department, suggested that the evaluation process be referred to the Real Estate 
Department. The motion was unanimously approved, and staff was directed to report to 
the Commission within two months. 






Report of the General Manager : 

Michelle Witt, Director, Bureau of Finance, was acting General Manager of the Public 
Utilities Commission in the absence of Mr. Thomas J. Elzey. 

On-Time Rebate Program 

Mr. Johnny Stein, General Manager, Municipal Railway, described how the On-Time 
Rebate Program would work. The On-Time Rebate Program would provide rebates to 
passengers whenever Muni buses are more than 15 minutes late. Cash passengers will be 
given free rides on the spot and Fast Pass holders will get a rebate coupon for a $ 1 .00 
discount on the next purchase of their Fast Pass, for a maximum discount of $5.00. 

Mr. Stein recommended the implementation of the On-Time Rebate Program on January 
1, 1993 due to heavy traffic situations during the holiday season. Commissioner Jefferson 
moved to accept the recommendation to start the program on January 1, 1993 and to 
provide discounts to holders of half monthly passes on a pro-rated basis. Commissioner 
Hardeman seconded. The motion was unanimously approved. 



92-205 



Work Furlough 

Michelle Witt, Acting General Manager, reported on the status of the work furlough 
program. She stated that the proposed revision to the Civil Service Commission's rules, 
to allow involuntary time off at the discretion of the department head, may not materialize 
because of opposition from various labor unions. The Controller has requested that staff 
submit a plan to meet the $975,000 furlough target. The Mayor's Office has implemented 
a hiring freeze pending development of an alternative to furlough. 

Ms. Witt reported that surveys were sent to all PUC employees to see how much interest 
there is in a voluntary furlough program. Ms. Witt said that she would report to the 
Commission at the next meeting regarding the survey results. President Makras requested 
that staff also layout all the options at that time. 

Jano Oscherwitz, Local 790 stated that members of the Local 790 are willing to support 
the voluntary furlough program if there will be a commitment of no layoffs. 

Automobile Use 

Anson Moran, General Manager, Hetch Hetchy, reported that the department now has 
only 14 vehicles allowed to be taken home. These vehicles are assigned to employees 
who would be responsible for responding to emergency calls. 

John Mullane, General Manager, Water Department, reported that the Water Department 
reduced the number of vehicles taken home from 97 vehicles to 50 vehicles. He stated 
that the review of automobile usage in the Water Department was based upon compliance 
with the Administrative Code. He further stated that the Adkriinistrative Code precludes 
some employees, who live outside the City, from taking City vehicles home. This may 
cost the City more money in terms of increased cost of claims against the City due to 
delays in responding to emergencies. Mr. Mullane stated that he put together a task force 
to work on amending the relevant section of the Administrative Code and will present it at 
the first meeting in November. 

Johnny Stein, General Manager, Municipal Railway, reported that Muni reduced the 
number of vehicles going home from 51 to 33 vehicles. 

Commissioner Jefferson emphasized the need to review the policy issues surrounding 
automobile usage and the inventory of vehicles more closely to ensure that the policy is 
clear and is being implemented. President Makras directed staff to report back to the 
Commission in thirty days with a recommendation or the status of vehicle usage and 
include an audit process where the Commission could adopt a detailed policy on vehicle 
usage. 

Budget 

Michelle Witt reported that staff is expecting a $7 million shortfall in the current budget 
year due to a shortfall in revenues from the State, cost overruns in the City Attorney's 
services, cost overruns in claims payout and the unmet work furlough target. She stated 
that the Mayor's Budget Directors expect a shortfall between $150 million to $200 
million in the 1993-94 budget. The 1993-94 budget would include changes in the City 
charter involving a proposal to restructure PUC. The Mayor's Office will create a task 
force to work on the restructuring of the City's organization. 

The Commission discussed ideas on how input could be provided to the Mayor regarding 
proposals for restructuring PUC. 



92-206 



Resolution No. 92-0320 - Authorizing the General Manager of the San Francisco Water 
Department to amend the professional services agreement with EDAW, Inc. to perform 
Phase II of the Watershed Management Plans/Program Environmental Impact Reports 
Project. 

David Pilpel, representing the Sierra Club, expressed concern regarding EDAW's ability 
to do the detailed technical work required on the Watershed Management Plans/Program 
Environmental Impact Reports project. Commissioner Jefferson affirmed and John 
Mullane, General Manager of the Water Department, concurred that EDAW, Inc. has a 
very good reputation in the industry. 



Public Comments: 

David Pilpel commented that the budget is coming apart again. 

THEREUPON, THE MEETING WAS ADJOURNED: 3:35 P.M. 



Romaine A. Boldridge 
Secretary 



92-207 



NUTES 

ptjblic UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 
Room 282, City Hall 

2:00 RM. 
November 10, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCUMENTS DEPT 
NOV 2 1992 

SAN FRANCISCO 
PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-208 



Call to Order: 2:20 p.m. 



Present: Vice President Victor G. Makras, Commissioner James D. Jefferson, 

Commissioner Patricia A. Carson, Commissioner Michael E. Hardeman 

Excused: President Gordon Chin 



Vice President Victor Makras presided. 



On motion of Commissioner Jefferson, seconded by Commissioner Carson, the Minutes 
of the Regular Meeting of October 27, 1992 were approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0323 BF Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Municipal Railway totaling $88,477.25. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0324 BF Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Municipal Railway totaling $37,500.00. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0325 MR Accepting the work performed under Municipal Railway Contract 

No. MR- 1022, Metro Yards - Security Fencing & Gates, as 
satisfactorily completed; approving Contract Modification No. 3 in 
the amount of $1,040.00; authorizing an extension of time for 
unavoidable delays of 375 calendar days; and authorizing final 
payment in the amount of $63,1 14.96 to the contractor, Oakland 
Fence Company. 

VOTES: AYES - Carson, Jefferson, Hardeman 

NOES - Makras 



92-209 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0326 MR Accepting the work performed under Municipal Railway Contract 

No. MR-999, Curtis E. Green Light Rail Facility Main Maintenance 
Building, Modification to LRV Lifts, as satisfactorily completed; 
approving Contract Modification No. 1 in the amount of $4,443.47; 
authorizing an extension of time for unavoidable delays of 150 
calendar days; and authorizing final payment in the amount of 
$32,558.47 to the contractor, Power Engineering Contractors. 

VOTES: AYES - Carson, Jefferson, Hardeman 

NOES - Makras 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0327 UEB Approving Contract Modification No. 20 to Municipal Railway 

Contract No. MR-869, Potrero Facility Rehabilitation, with N. L. 
Barnes Construction Co., Inc. in the amount of $12,259,776.70; and 
extending the contract completion date to September 23, 1992. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0328 UEB Authorizing the Manager of the Utilities Engineering Bureau to 

execute Contract Modification No. 2 to Contract No. HH-829R, 
O-Shaughnessy Septic System Rehabilitation Phase II, with San 
Luis Construction to extend the time allowance from 90 calendar 
days to 130 calendar days to complete the delivery and installation 
of the sewage lift station emergency standby generator, at no 
additional cost to the City. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0329 UEB Accepting the work performed under San Francisco Water 

Department Contract No. WD-2052, 8-inch Ductile Iron Main 
installation in Fremont Street between Market and Harrison Streets, 
as satisfactorily completed; approving credit to the City of 
$1,433,900; authorizing an extension of time of unavoidable delays 
of 45 working days; and authorizing final payment in the amount of 
$18,082.00 to the contractor, Shaw Pipeline, Inc. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0330 PT Approving Non-Civil Service and Temporary appointments and 

removals for the month of September 1992. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 



92-210 



On motion of Hardeman, seconded by Carson, the following 
resolution was adopted: 

92-033 1 MR Authorizing the General Manager of the Public Utilities 

Commission to execute a lease agreement with New Flyer Industries 
to operate a New Flyer low-floor bus in Municipal Railway revenue 
service for a nominal fee of One Dollar and to indemnify and save 
harmless the lessor pursuant to San Francisco Administrative Code, 
Section 1.25-1, from and against any and all claims. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0332 WD Authorizing the General Manager of the Public Utilities 

Commission to enter into an agreement with San Mateo County 
Department of Public Works for reimbursement of all costs related 
to the relocation of the San Francisco Water Department water 
supply pipeline in conjunction with the design and construction of 
the Fifth Avenue Grade Separation Project between El Camino Real 
and Middlefield Road in Redwood City. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Hardeman, seconded by Carson, the following 
resolution was adopted: 

92-0333 UEB Authorizing the Manager of the Utilities Engineering Bureau, to 

negotiate and execute a Professional Services Agreement with 
James M. Montgomery Consulting Engineers, Inc. to perform the 
"Needs Assessment and Functional Study" for the planned San 
Francisco Water Department Millbrae Water Quality Laboratory, 
for an amount not to exceed $200,000. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0334 UEB Rejecting all bids submitted for San Francisco Water Department 

Contract WD-2064, 36-inch Steel Main Installation between San 
Jose and 25th Streets, 25th Street between Dolores and Sanchez 
Streets, Sanchez Street between 25th and 22nd Streets, and 22nd 
Street between Sanchez and Castro Streets; and authorizing 
rebidding the work as San Francisco Water Department Contract 
WD-2064R. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 



92-211 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0335 BF Authorizing the Assistant General Manager of Finance to apply for, 

accept and expend $5,578,791 of funds from the San Francisco 
County Transportation Authority for the Municipal Railway's 
capital program projects; namely, Financial Capacity Study, Muni 
Metro Extension to Sixth Street, Metro Accessibility Improvements, 
Metro East LRV Facility, Rehabilitation & Replacement, and 
Paratransit Service. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 

On motion of Jefferson, seconded by Carson, the following 
resolution was adopted: 

92-0336 BF Authorizing an amendment to the agreement with Frye Claims 

Consultation and Administration, for vehicle and structure appraisal 
services, to increase the compensation not to exceed $30,000 and to 
extend the term for one year. 

VOTES: AYES - Makras, Carson, Jefferson, Hardeman 






Announcement: 

President Makras announced that the Commission met in Executive Session immediately 
before the meeting. He reported that no action was taken with respect to the San 
Francisco Water Department land parcel leased to the Olympic Club; and that no 
settlement was reached in the case of Roebbelen Engineering vs. the City and County of 
San Francisco, Superior Court #928-1 15. 

Old Business: 

President Makras asked whether there were any amendments to the On-Time Rebate 
Program before it is implemented. Bobby Brown, President, Transport Workers Union, 
Local 250A, brought up concerns for the safety of personnel. President Makras directed 
staff to meet with labor unions to resolve outstanding issues of the program and report to 
the Commission on the results of the discussion. 



New Business: 

Task Force 

President Makras appointed a task force composed of the heads of the operating 
departments and the Director of Finance to evaluate all reorganization proposals for the 
Public Utilities Commission. The task force would evaluate budget issues from both 
operational and financial perspectives and would prepare reports and recommendations to 
the Commission. 

Commissioner Jefferson suggested that the report to the Commission should address 
issues such as: the type of organizational structure which would respond to the Mayor's 
direction; the financial and operational impacts to the departments; regulatory issues; and 
management of ongoing capital projects. 

Michelle Witt, Director, Bureau of Finance, was appointed to chair the task force. 



92-212 



Alice Fialkin, Local 200, stated that the union would like to review any reorganization 
plans that would affect their bargaining units prior to development and implementation. 

President Makras directed staff to present a timeframe for submission of reports to the 
Commission with regard to the budget proposals. 

David Pilpel requested that the Commission include the public and labor union 
representatives in the review and development stage of the budget process and that the 
PUC task force work in parallel to the City's budget task force. 

Report of the General Manager: 

1992-93 Budget Process 

Michelle Witt, Director, Bureau of Finance, reported that surveys were distributed to PUC 
employees to determine employees' interest in the voluntary furlough program. She 
stated that they received a fairly good response. 

Ms. Witt stated that the Municipal Railway is exceeding its salary savings and may be 
able to meet the work furlough target for the current year because of the increased salary 
savings. 

Bobby Brown of the Transport Workers Union, Local 250A, stated that his union did not 
have a problem with their members participating in a voluntary furlough program. 

Jano Oscherwitz, Local 790, stated that their members would feel comfortable in 
completing surveys if it were done City-wide. Ms. Oscherwitz stated that they are in the 
negotiation process regarding distributing voluntary furlough surveys in all City 
departments. 

1993-94 Budget 

Michelle Witt reported that she had requested all department heads to submit their 
recommendations regarding decentralization. Ms. Witt stated that the Mayor's Office 
requested PUC to submit a baseline budget by November 30th which would include the 
basic 1992-93 fixed costs under the existing organization, the baseline budget under the 
decentralization scenario, and the programmatic budget. Ms. Witt stated that she would 
present the impacts of decentralization to PUC departments by November 24, 1992 . 



^:^:^:^^:^!^ + ^:^:^:^:%^:^^:^^;^^:^:^: + + + ^: + 



Item No. (11) : Authorizing the Manager of the Utilities Engineering Bureau, to execute 
Amendment No. 7 to the Professional Services Agreement with Camp Dresser and 
McKee, Inc., for additional professional construction support engineering services for the 
San Andreas Water Treatment Plant Expansion No. 2 Project. 

Commissioner Jefferson expressed his concerns that there is lesser MBE participation in 
this project. 

President Makras questioned the cause of the urgency of the project which necessitated 
overtime work. 

This item was continued until staff submits a report identifying the problems and 
complexity of the project and the reason for the decreased level of MBE participation. 



92-213 



Item No . (13): Authorizing the Manager of the Utilities Engineering Bureau to negotiate 
Amendment No. 8 to the professional services agreement with Bechtel Corporation on a 
sole source basis for construction phase services, including construction management, for 
the Muni Metro Turnaround Project. 

Item No. (1 5): Approving payment of insurance premiums for the Owner Controlled 
Insurance Program (OCIP) for the Muni Metro Turnback Project; and directing staff to 
seek Commission's approval for insurance and claims administration in conjunction with 
Amendment No. 1 for the Sedgwick/Carrie/Leong brokerage agreement. 

Commissioner Jefferson suggested that staff conduct an informational workshop so that 
the Commission will better understand the various aspects of the Muni Metro Turnaround 
Project. 

The Commission voted to continue Item Nos. (13) and (15) pending organization of an 
informational workshop for the Commission with respect to the Muni Metro Turnaround 
Project. 

Commissioner Hardeman voted no on the motion to continue these items. He stated that 
Bechtel Corporation is one of the few companies who could best handle the job; and he 
therefore believed that a workshop was not necessary. 

Item No. (16) : Authorizing the Assistant General Manager of Finance to apply for, accept 
and expend $5,578,791 of funds from the San Francisco County Transportation Authority 
for the Municipal Railway's capital program projects. 

David Pilpel expressed his opposition to the Muni Metro Extension Project. 

Item No. (17) : Authorizing an amendment to the agreement with Frye Claims 
Consultation and Administration, for vehicle and structure appraisal services, to increase 
the compensation not to exceed $30,000 and to extend the term for one year. 

President Makras suggested that the compensation reflect a more appropriate expenditure 
for the coming year, and if claims were managed higher than anticipated, a report should 
be submitted to the Commission. 

The Commission voted unanimously to amend the motion to reflect that the compensation 
to Frye Claims Consultation should not exceed $30,000. 






THEREUPON, THE MEETING WAS ADJOURNED: 3:55 p.m. 



Romaine A. Boldridge 
Secretary 



92-214 



PUBLIC 



LIBRARY 



MAIN PUB ^ Documents 
Government Doc Floor 

Civic Center 



INUTES 



%, 



>UBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

SPECIAL MEETING 
Room 282, City Hall 
12:00 P.M. 
ovember 24, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCI IMFNTS DEPTc 

DEC 1 5 1992 
san franc;: 

PUBLIC LIBRARY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-215 



Call to Order: 12:05 p.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 

No action was taken at this meeting. 






Muni Metro Turnback Project: 

The Commission held a public meeting for an informational presentation and workshop 
on the Municipal Railway's Muni Metro Embarcadero Turnback Project. 

Flint Nelson, Manager, Utilities Engineering Bureau Transportation Projects Division, 
presented a general overview of the project, its purpose, benefits, and costs. Mr. Nelson 
provided schematic diagrams and a miniature model of the Embarcadero Turnback 
Project. Dave Sutter, Utilities Engineering Bureau, answered questions from the 
Commission. 

Mr. Nelson discussed the contract with Bechtel Corporation, the preliminary engineering 
and environmental impact study, the design and construction management phases of the 
project. Commissioners Jefferson and Makras expressed concerns in awarding the 
construction management contract to Bechtel Corporation on a sole source basis and the 
issue of having the design and construction management work handled by the same firm. 

The meeting was recessed to December 8, 1992 at 12:00 p.m. in Room 282, 
City Hall: 1:50 P.M. 



Romaine A. Boldridge 
Secretary 



92-216 



MINUTES 



IV 



^ 



PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 



Frank M. Jordan 
Mayor 

REGULAR MEETING 
Room 282, City Hall 

2:00 P.M. 
November 24, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DOCl IMFNTS DEPT 
' DEC 15 1992 

SAN FRANC ) 
PUBLIC LIBRmhY 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-217 



Call to Order: 3:05 p.m. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 



On motion of Commissioner Jefferson, seconded by Commissioner Hardeman, the 
Minutes of the Regular Meeting of November 10, 1992 were approved as corrected. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted in executive session: 

92-0337 UEB Approving the settlement of claim under Superior Court No. 

928-115, Roebbelen Engineering Inc. vs. City and County of San 
Francisco. 

VOTES: AYES - Chin, Jefferson, Carson, Hardeman 

NOES - Makras 



On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0338 BF Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Municipal Railway totaling $141,000.00. 



VOTES: 



AYES - Chin, Makras, Jefferson, Carson, Hardeman 



On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0339 BF Approving collection of charges for damages against the San 

Francisco Municipal Railway, Water Department, Hetch Hetchy, 
and Bureau of Light, Heat and Power for the months of September 
and October 1992. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 



On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0340 UEB Approving Contract Modification No. 3 to Contract No. WD2037R, 

Calaveras Pipeline Replacement Project, in the amount of 
$684,390.00; approving the time extension of four (4) calendar 
days; and requesting the Controller to transfer $684,390 from the 
San Andreas Water Treatment Plant Expansion No. 2 Project to 
supplement the Calaveras Pipeline Replacement Project. 



VOTES: 



AYES - Chin, Makras, Jefferson, Carson, Hardeman 



92-218 



On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0341 UEB Approving Debit Contract Modification No. 13 to San Francisco 

Water Department Contract WD-2060, San Andreas Water 
Treatment Plant Expansion No. 2, with S.J. Amoroso Construction 
Co., Inc./Verrett Construction Company, Inc., in the amount of 

$243,200. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0342 UEB Requesting the Board of Supervisors' approval to extend the time 

for the award of San Francisco Water Department Contract No. 
WD-2123, City Distribution Division (CDD) Machine Shop 
Upgrade; and awarding the contract to AR Construction Company 
in the amount of $201,849.01 subject to the Board of Supervisors 
approval of extension of time to award. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0343 GM Approving contract amendment with the Planning Collaborative in 

the amount of $240,000 to complete Specific Plan work for the 
Water Department's lands in Pleasanton. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0344 MR Authorizing the Municipal Railway to donate ten (10) Muni Fast 

Passes as prizes for employee participation in the 1992 Combined 
Charities Campaign. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0345 MR Authorizing the Municipal Railway to modify the contract with 

Breda Costruzioni Ferroviarie S.p.A. to purchase five additional 
light rail vehicles at a cost of $2,197,000 each, increasing the 
contract amount by $10,985,000, for a total contract amount not to 
exceed $93,072,695; to extend the expiration date to purchase the 
remaining option vehicles; and to incorporate the Master Resolution 
List. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0346 MR Authorizing the Municipal Railway to issue Request for Proposals 

from Consulting Engineering Services for the procurement of 
articulated and standard Electric Trolley Buses. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 
92-219 



On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0347 MR Granting approval to the San Francisco Arts Commission to 

designate seven selling spaces for street artists at Harvey Milk Plaza 
at Castro Street Station, effective December 1, 1992 through 
February 28, 1993. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0348 HH Accepting the report titled "Water Supply, Demand, and the 

Future"; and instructing staff to distribute the proposed policy 
resolutions to interested parties, work with interested parties, 
schedule a hearing in January at which PUC can accept public 
testimony on the proposed resolutions, and schedule a subsequent 
meeting of the PUC to discuss and act on the policy resolutions. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Makras, the following 
resolution was adopted: 

92-0349 UEB Awarding Municipal Railway Contract No. MR-898R, No. 14 

Mission Line Trolley Overhead Reconstruction Project (Phase A - 
Persia Avenue to Daly City Loop), in the amount of $4,787,244.00 
to L.K. Comstock and Co., Inc. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Jefferson, seconded by Hardeman, the following 
resolution was adopted: 

92-0350 UEB Approving Modification No. 1 to Contract WD-2095, Pilarcitos 

Forebay - Repair Walkway and Slide Gates, with Valentine 
Corporation, to extend the contract for 164 days and increase the 
cost by $64,143.09, for a total contract amount of $170,512.09. 

VOTES: AYES - Chin, Jefferson, Carson, Hardeman 

NOES - Makras 



On motion of Hardeman, seconded by Jefferson, the following 
resolution was adopted: 

92-0351 UEB Rejecting all bids received on July 21, 1992 for the San Francisco 

Water Department Contract No. WD-2089, 12- and 8-Inch Ductile 
Iron Main Installation in Powell between Lombard and Jefferson 
Streets, and Mason Street between Lombard and Chestnut; and 
authorizing re-advertisement of this work as San Francisco Water 
Department Contract No. WD-2089R. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 






92-220 



Announcement: 

President Gordon Chin announced that the Public Utilities Commission met in Executive 
Session immediately before the regular meeting and approved the settlement of claim 
under Superior Court No. 928-1 15, Roebbelen Engineering Inc. v. City and County of 
San Francisco. 






Old Business: 

Commissioner Hardeman reported that he met with the 19th Avenue Committee and Don 
Birrer, Facilitator of the 19th Avenue Project. The Committee proposed that the 
Municipal Railway test the Committee's loop proposal. Commissioner Hardeman stated 
that further research should be done by the Municipal Railway staff to determine whether 
the test is feasible. 






General Manager's Report: 

PUC Reorganization Proposal 

Michelle Witt, Director, Bureau of Finance, discussed reorganization proposals for the 
Public Utilities Commission. The proposal submitted to the Commission included 
proposals from the bureaus recommending assignment of staff resources should the 
Municipal Railway become a stand alone department, and proposals for the Water 
Department and Hetch Hetchy showing the two operating departments sharing bureau 
functions. The package also included comments from the three operating departments 
and the bureaus on the implications of decentralization. 

Ms. Witt stated that decentralization of the bureaus will not create savings to the City. 
She said that the decentralization proposal would cost an additional $3 million to the 
Municipal Railway, assuming Muni would still receive subsidies from Water and Hetch 
Hetchy. Ms. Witt stated that the Municipal Railway had not been paying its proportional 
share of the costs of maintaining the bureaus since the bureaus were created. The 
decentralization would, however, decrease the Water Department and Hetch Hetchy 
budgets by $3 million. 

Ms. Witt stated that the distribution of positions to the three operating departments were 
done without looking at people who are in those positions. She stated that after the cost 
issues were dealt with, staff would redefine positions that would be transferred or created 
by the decentralization. 

Thomas J. Elzey, General Manager, Public Utilities Commission, stated that the Mayor 
asked PUC to look at several outstanding issues such as: privatizing the claims function, 
transferring security functions to the Police Department, contracting the revenue 
collection function, issues of charter authority, and implications of the proposed changes 
to the units reporting to the General Manager's Office. 

Commissioner Jefferson asked whether the departments that will be affected by the 
transfer of functions, for example, Police and Civil Service Commission will in fact be 
able to absorb those functions. Michelle Witt responded that the Police Department has 
been approached, and that PUC staff are in the process of talking with other departments. 

Michelle Witt stated that the Mayor's Office asked PUC to submit a baseline budget 
based on both the present organizational structure and the decentralized PUC bureaus. 



92-221 



President Chin requested that staff keep the Commission informed about the City wide 
task force activities, specifically with respect to the restructuring of City government. He 
stated it is critical for the Commission to participate in the deliberation as the task force 
relates to PUC and its relationships to other departments. 

David Pilpel suggested that PUC look at merging those smaller organizational units of 
PUC such as the Bureau of Energy Conservation, Bureau of Management Information 
Systems, Contract Compliance, Bureau of Light, Heat and Power, Health and Safety, and 
Protective Services into the three operating departments, so that there will be three 
operating departments and three bureaus: Finance, Personnel, and Utilities Engineering. 
He also expressed his concerns for the need for capital planning in the Municipal 
Railway, long range planning at the Water Department and Hetch Hetchy, and creating a 
public affairs function at the Utilities Engineering Bureau. 

Proposed Reductions and Reassignments at PUC 

Mr. Elzey reported on the proposed reduction and reassignments in the PUC workforce 
anticipated to occur on January 1 , 1993. Out of those reductions and reassignments, 40% 
will be female, 20% Black, 10% Hispanic, 20% Asian, and 10% Filipinos. 

24th and Utah Property 

Fred Howell, Finance Bureau, reported that PUC and Muni staff are moving rapidly in 
trying to vacate the 24th and Utah property by March 1993. He stated that the reason 
nothing has been finalized yet is because of funding issues. As a result, they are looking 
into leasing the replacement site (700 Pennsylvania) as opposed to purchasing the site. 
Staff have authorized the Real Estate Department to explore the possibilities of a lease 
option. Another reason for the delay is that the Municipal Railway's capital improvement 
planning is currently in progress. Also, staff requested authorization from the Federal 
Transit Authority to allow the San Francisco General Hospital to use a portion of the Scott 
Facility for temporary parking. 

Work Furlough Survey 

Johnny Stein, Municipal Railway, General Manager, reported that 6% of the Muni 
Railway work force replied to the work furlough survey. Out of this 6%, 70% responded 
no. From those people who indicated interest in work furlough, the Municipal Railway 
would be able to give 600 unpaid workdays to the City. 






Resolution No. 92-0343: Approving contract amendment with the Planning Collaborative 
in the amount of $240,000 to complete Specific Plan work for the Water Department's 
lands in Pleasanton. 

The Commission voted unanimously to approve the contract amendment with the 
Planning Collaborative. 

President Gordon Chin asked about the City of Pleasanton 's position with regard to the 
project now that there were newly elected officials on the City Council. Jeff Grote, 
President of the Planning Collaborative, responded he felt strongly that the City Council 
will favor moving this project along. 

President Chin requested that a workshop be conducted in two to three months to provide 
the Commission with new developments in the project and also provide information 
regarding the intentions of the City of Pleasanton and the East Bay Municipal Utilities 
District. 



92-222 



Resolution No. 92-0348 : Accepting the report titled "Water Supply, Demand, and the 
Future"; and instructing staff to distribute the proposed policy resolutions to interested 
parties, work with interested parties, schedule a hearing in January at which PUC can 
accept public testimony on the proposed resolutions, and schedule a subsequent meeting 
of the PUC to discuss and act on the policy resolutions. 

Andy Moran, General Manager, Hetch Hetchy, pointed out that the capital figures used in 
the report were very old and were just gross estimates. 

Commissioner Jefferson stated that this project is one of the areas where a workshop is 
necessary so that the Commission could look closely at the recommendations and 
available options relative to developing new water supply systems. 

The Commission voted unanimously to accept the report and directed staff to distribute 
the report to all interested parties, specifically those people who testified in the water 
rationing hearings, and also to schedule a public hearing in January. 

Resolution No. 92-0350 : Approving Modification No. 1 to Contract WD-2095, Pilarcitos 
Forebay - Repair Walkway and Slide Gates, with Valentine Corporation, to extend the 
contract for 164 days and increase the cost by $64,143.09, for a total contract amount of 
$170,512.09. 

The Commission voted 4-1 to pass the resolution. Commissioner Victor Makras voted 
no. Commissioner Makras expressed concern about the increase in the costs and time 
required to do the additional work. 






Item No. 15 : Authorizing the Manager of the Utilities Engineering Bureau to negotiate 
Amendment No. 8 to the professional services agreement with Bechtel Corporation on a 
sole source basis for construction phase services, including construction management, for 
the Muni Metro Turnaround Project. 

Item No. 16 : Approving payment of insurance premiums for the Owner Controlled 
Insurance Program (OCIP) for the Muni Metro Turnback Project; and directing staff to 
seek Commission's approval for insurance and claims administration in conjunction with 
Amendment No. 1 for the Sedgwick/Carrie/Leong brokerage agreement to administer the 
Owner Controlled Insurance Program, during the construction phase of the project. 

Item Nos. 15 and 16 were continued pending completion of the workshop on the Muni 
Metro Extension Embarcadero Turnback Project. 






THEREUPON, THE MEETING WAS ADJOURNED: 4:15 P.M. 



Romaine A. Boldridge 
Secretary 



92-223 



nV 



*»* 



Jl 



Civic clnter C T nts 

er " 1st Floor 



INUTES 



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PUBLIC UTILITffiS COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

RECESSED MEETING 
Room 282, City Hall 

12:00 P.M. 
^December 8, 1992 



COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEC 3 1992 

SAN FRAN'Cfsrn 
PU BL/CLIBRAR? 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-224 



Call to Order: 12:10 p.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 

Commissioner Makras arrived at 1 :05 p.m. Commissioner Hardeman 
arrived at 1:30 p.m. 

No action was taken at this meeting. 






MUNI METRO EMBARCADERO TURNBACK PROJECT 

This meeting was continued from the meeting held on November 24, 1992. 

Owner Controlled Insurance Program 

Keith Grand, Risk Manager, City and County of San Francisco, described the Owner 
Controlled Insurance Program (OOP) and explained its components. 

In response to Commissioner Jefferson's question on the contractors' incentives to 
minimize claims, Mr. Grand responded that the contractors would pay deductibles and 
they would have to adhere to safety rules. Dave Sutter responded to the Commissioners' 
questions that Bechtel would indemnify the City against loss over $40 million resulting 
from their contracts. 

Mr. Grand stated that the MBE participation for the insurance broker services is 25%. 
There were no MBEs providing the coverage. 

Mr. Grand stated that the Public Utilities Commission's Claims Unit and the City 
Attorney's Office would be the only direct City players to administer the insurance 
program. In response to Commissioner Chin's question of whether this can be assigned 
to contractors, Michelle Witt, PUC Finance Director, said that the City has the 
responsibility and ultimate authority to administer the program. Mr. Elzey stated that it is 
possible to privatize the claims process work. It could likely be contracted out. 

Mr. Grand pointed out that the federal government strongly recommends the Owner 
Controlled Insurance Program approach because of the advantages of control in safety 
and claims administration. 

BART Agreement 

Flint Nelson, Manager, Transportation Projects Division, Utilities Engineering Bureau, 
provided a background of the agreement with the Bay Area Rapid Transit (BART). He 
discussed the unresolved issues concerning the agreement with BART. He said that staff 
would be meeting with BART on the requirement for PUC to maintain a minimum level 
of General Liability Insurance of $100 million. BART wants PUC to obtain a General 
Liability Insurance of up to $200 million, and to give a three-day notice before the 
Municipal Railway can get access to BART tracks. 



92-225 



Project Financing 

Michelle Witt, Finance Director, discussed the funding for the Muni Metro Embarcadero 
Turnback Project. She stated that the total baseline budget for this project is $202.3 
million. The Federal Transit Authority (FTA) required PUC to maintain a capital reserve 
of $10.2 million which would bring the total programmed funding to $212.5 Million. Ms. 
Witt said that staff is currently negotiating with FTA for the full funding of the project. 
FTA has put a dollar cap on the project, which is $212.5 million and will not fund any 
more than this amount. 

Bob Schnaibel, Manager of Operations for the Rail Transit Department of Bechtel 
Corporation, responded to questions from the Commission about MBE participation. He 
stated that Bechtel would be able to meet the 40% MBE goal participation. The plan they 
have was based on looking at the Utilities Engineering Bureau staff taking some of the 
construction management and engineering support work. Staff would determine the 
positions that would be manned by City workforce. 

Commissioner Jefferson urged the parties to formulate a quality DBE program where 
DBEs participate in meaningful technical roles. 

President Chin pointed out that if 40% DBE participation is a guarantee, then possibly 
50% participation could be a goal. Arnold Baker, Contract Compliance Officer, 
responded to Commissioners' questions with respect to setting MBE participation goals in 
PUC contracts. Mr. Baker stated that it could not be done with federal contracts but there 
could be a stipulation to first seek local contractors. Mr. Baker added that there would be 
more latitude in professional services contracts than in construction contracts. 

Commissioner Hardeman stated that the Commission should discuss the overall policy 
regarding MBE participation goals separately, but to make changes at this point would not 
be a good idea. 






THEREUPON, THE MEETING WAS ADJOURNED AT 2: 15 p.m. 



Romaine A. Boldridge 
Secretary 



0446M 



92-226 






TOINU 



TES 



PUBI 



>UBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

REGULAR MEETING 

Room 282, City Hall 

2:30 P.M. 

December 8, 1992 

COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-227 



Call to Order: 2:40 p.m. 

Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 



On motion of Commissioner Hardeman, seconded by Commissioner Jefferson, the 
Minutes of the Special Meeting on the Muni Metro Embarcadero Turnback Project and 
the Minutes of the Regular Meeting of November 24, 1992 were approved. 






RESOLUTION 
NO. 

On motion of Commissioner Jefferson, seconded by Commissioner 
Makras, the following resolution was adopted: 

92-0352 MR Approving the Municipal Railway Americans with Disabilities Act 

Paratransit Service Plan Update, and directing staff of the Municipal 
Railway to submit this plan to the Metropolitan Transportation 
Commission and the Federal Transit Administration. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, the following resolution was adopted: 

92-0353 MR Requesting the Controller to allot funds and to draw warrants 

against such funds as are or will be available in payment of claims 
against the San Francisco Municipal Railway totaling $18,000.00. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, the following resolution was adopted: 

92-0354 WD Awarding the San Francisco Water Department Contract No. 

WD-2115, San Andreas Pipeline No. 3 - Rehabilitation, to A. Ruiz 
Construction Co. and Associates, and Ranger Pipelines, Inc., a joint 
venture, in the amount of $5,448,000.00. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Makras, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0355 MR Authorizing the General Manager of the Public Utilities 

Commission to extend the expiration date of the Peninsula Corridor 
Joint Powers Board (JPB) Feeder Bus Contract No. 04E601-RO to 
June 30, 1993. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 



92-228 



On motion of Commissioner Makras, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0356 WD Declaring that the 17.35 acre parcel leased to the Olympic Club, 

located in San Francisco and San Mateo counties, is surplus to the 
Water Department's operating needs; and authorizing the Director 
of the Real Estate Department to prepare necessary legislation for 
enactment by the Board of Supervisors and to conduct the sale of 
the subject property at public auction. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0357 WD Authorizing the General Manager of the San Francisco Water 

Department to execute a Memorandum of Understanding with the 
Central California Coast Biosphere Reserve (CCCBR) to commit 
necessary staff time to participate in the activities of the CCCBR. 

VOTES: AYES - Makras, Jefferson, Carson, Hardeman 

ABSENT - Chin 

On motion of Commissioner Makras, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0358 HH Adopting a revised policy regarding the use of guest facilities at 

O'Shaughnessy Dam. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Makras, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0359 UEB Awarding all bid items of San Francisco Municipal Railway 

Contract No. MR-889R2, Flynn Facility Modifications, to Angotti & 
Reilly/T.E. Joo Construction Inc., a joint venture bidder, in the 
amount of $396,750.00. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Makras, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0360 UEB Authorizing the Manager of the Utilities Engineering Bureau to 

execute Amendment No. 7A to Agreement CS-361 with Bechtel 
Corporation for professional services during the bid, award and 
preliminary advance construction phases of the Muni Metro 
Turnaround Project, to extend the agreement as amended to date 
through March 5, 1993, at no additional cost. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 



92-229 



On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0361 UEB Authorizing the Manager of the Utilities Engineering Bureau to 

negotiate Amendment No. 8 to the professional services agreement 
with Bechtel Corporation on a sole source basis for construction 
phase services, including construction management, for the Muni 
Metro Turnaround Project. 

VOTES: AYES - Chin, Jefferson, Carson, Hardeman 

NOES - Makras 



On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0362 UEB Approving payment of insurance premiums for the Owner 

Controlled Insurance Program (OCIP) for the Muni Metro Turnback 
Project; and directing staff to seek Commission's approval for 
insurance and claims administration in conjunction with 
Amendment No. 1 for the Sedgwick/Carrie/Leong brokerage 
agreement to administer the Owner Controlled Insurance Program, 
during the construction phase of the project. 

VOTES: AYES - Chin, Jefferson, Carson, Hardeman 

NOES - Makras 



On motion of Commissioner Hardeman, seconded by Commissioner 
Jefferson, the following resolution was adopted: 

92-0363 BEC Authorizing the General Manager of the Public Utilities 

Commission to negotiate and execute a professional services 
contract with Brown, Vence & Associates to perform energy 
efficiency design review of municipal capital improvement projects, 
in the amount of $65,000.00. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 






Communications: 

Romaine Boldridge, Public Utilities Commission Secretary, advised the Commission of 
upcoming meetings in December and January 1993. She stated that staff would publish a 
notice for a public hearing on January 19, 1993 to discuss the Public Utilities Commission 
budget. 

President Chin directed staff to outline a tentative calendar of meetings for the next three 
months. 



Introduction of Old Business: 

Commissioner Hardeman reported that he attended the dedication of Cable Cars 13, 21 
and 49 on Saturday, December 5, 1992. He said that the function was very well attended 
and that staff did a good job. Commissioner Hardeman represented the Mayor who was 
unable to attend. 






92-230 



Commissioner Makras brought up the importance of expediting the appraisal of the 
housing units owned by the Water Department and Hetch Hetchy to determine their 
current fair market rental value. He stated that he had calculated, based on a hypothetical 
rental rate which could have brought the rent up to $350 over the last 10 years and adding 
a nominal cost for utilities, the City would have realized $4.5 million in revenues. 

Commissioner Hardeman stated that he agrees to restructuring the rental rates but he 
suggested not to change it immediately because it would be unfair to the workers. 

President Chin suggested that staff submit options to the Commission with regard to 
changing the housing policy and develop a method of charging for the cost of utilities. 

New Business: 

Commissioner Makras requested that the Commission hold a hearing on December 22, 
1992 regarding the May 1992 Municipal Railway investigation. 

Commissioner Jefferson requested that staff develop a set of performance indicators that 
could be used to do a comparative performance analysis of other transit systems and the 
Municipal Railway. Those performance factors should include productivity of workers, 
and indicators relating to service, maintenance, and ridership. 

Thomas J. Elzey, General Manager, Public Utilities Commission, replied that a similar 
group of performance indicators are provided internally but they do not currently include 
other transit systems. He said that comparative data can be included. 

General Manager's Report: 

Munici pal Railway Investigation 

Thomas J. Elzey, General Manager, Public Utilities Commission, reported on the 
Municipal Railway maintenance investigation that occurred in May 1992. Mr. Elzey 
stated that staff was not able to come up with any conclusions based upon the data and no 
further steps were taken on the information that was gathered. 

President Chin expressed the need to establish parameters for the hearing at the next 
meeting and need to be aware that there are procedures that would have to be followed for 
some type of issues, for instance, matters that may involve Civil Service. 

President Chin pointed out areas that he would like to have clarified regarding the 
investigation such as: (1) what happened in the two weeks of May, (2) the scope and 
objectives of the observation and why individuals were not identified for appropriate 
disciplinary actions; (3) how was employee discipline dealt with, and what are the 
management measures to make sure employees do their jobs; and (4) how can we make 
the best use of PUC resources. 

Commissioner Makras suggested that the former staff of Protective Services and the two 
Bums Security personnel involved with the investigation should attend the meeting. 
Commissioner Makras stated he would like to clarify the rules given to the observers 
regarding the manner of conducting the investigation, work assignments, chain of 
command and why there was no end result. 

1993-94 Budget 

Michelle Witt, Finance Director, reported that the baseline budget was submitted to the 
Mayor on November 30. Since that time, staff have revised Hetch Hetchy 's baseline 
budget and is currently in the process of revising the Municipal Railway's budget. 



92-231 



The budget for Hetch Hetchy was revised to change the costs of wheeling charges and the 
purchase of power. Hetch Hetchy increased its purchase of power budget by 74%. The 
general fund transfer will be reduced from $17 million to $7 million. Hetch Hetchy 's 
general fund transfer will be reduced to $ 1 1 million this year. 

Ms. Witt reported that the Municipal Railway's budget was also being revised because the 
Mayor's Office wanted the Municipal Railway to absorb all of this year's one time costs 
in next year's budget and also the cost of salary standardization. This would bring Muni's 
shortfall to $24-28 million. The Muni's budget submitted to the Mayor showed two 
baseline budgets - one for a decentralized department and another for a centralized 
department. Without these adjustments, the Municipal Railway's baseline budget 
shortfall would be $12 million. 

Ms. Witt also reported that the Mayor's Office asked PUC to do a baseline budget by 
program which would be due next week. PUC will receive its deficit target by December 
31, 1992. However, the budget, which is due to the Mayor on February 1st would not 
include the deficit target numbers. Ms. Witt stated that the Mayor's Office established a 
new policy that work order departments have to absorb any increased costs. This policy 
would affect service bureaus like the Bureau of Light, Heat and Power. 

1992-93 Budget 

Michelle Witt stated that the Mayor's Office recommended that departments look at the 
two years' (1992-93 and 1993-94) shortfall as one problem. The February 1st budget 
submission deadline would mean that PUC has to come up with a way to balance its 
budget. The Commission would have to make its recommendations to the Mayor on how 
to proceed. Thomas Elzey said that staff expects to hear from the Mayor's Office 
regarding service reductions and fare increases. 






Resolution No. 92-0352 : Approving the Municipal Railway Americans with Disabilities 
Act Paratransit Service Plan Update, and directing staff of the Municipal Railway to 
submit this plan to the Metropolitan Transportation Commission and the Federal Transit 
Administration. 

Annette Williams, Manager, Municipal Railway Accessible Services Program, provided 
the background information and current status of the program. 

Among those who commented at the meeting were Burton H. Wolfe, Bruce Oka of Oka & 
Associates, Jonathan Marsh, Tom Karnes from the Muni Accessibility Advisory 
Council, and representatives of the Paratransit Coordinating Council: namely, B. Elias 
Baker, Michael Kwok, Arlene Wong, Cheryl Damico. Their suggestions and comments 
would be included in the final printed document of the Muni ADA Paratransit Service 
Plan Update. 

The Commission voted unanimously to approve the plan and its submission to the Federal 
Transit Authority. 

Item No. 10 : Authorizing the General Manager of the Public Utilities Commission to 
negotiate and execute an interest rate swap agreement on all or a portion of the San 
Francisco Water Department, 1991 Series A Revenue Bonds, between the Public Utilities 
Commission and Grigsby Brandford & Co., Inc., and Bankers Trust Securities. 

Commissioner Jefferson moved to adopt the resolution, seconded by President Chin. 
Commissioners Makras, Carson and Hardeman voted no. The motion failed. 



92-232 



Resol ution No. 92-0356 : Declaring that the 17.35 acre parcel leased to the Olympic Club, 
located in San Francisco and San Mateo counties, is surplus to the Water Department's 
operating needs; and authorizing the Director of the Real Estate Department to prepare 
necessary legislation for enactment by the Board of Supervisors and to conduct the sale of 
the subject property at public auction. 

Commissioner Makras moved to declare the land parcel as surplus to the Water 
Department. He stated that he was confident that the appraisal results justified the land's 
value. Commissioner Carson seconded. Commissioner Jefferson expressed concern that 
the sale would only lead to one buyer. 

David Pilpel expressed his opinion that PUC should not sell its assets to balance the 
budget. 

Resolution No. 92-0358 : Adopting a revised policy regarding the use of guest facilities at 
O'Shaughnessy Dam. 

Anson Moran, General Manager, Hetch Hetchy Water and Power, discussed the purpose 
of the change in the policy regarding the use of guest facilities at O-Shaughnessy Dam. 

Mr. Moran indicated that it would be easier to make the determination, in practice, as to 
which visits are official or unofficial, and when presence of guests is incidental to an 
official visit. He stated, as an example, that the spouse and children of an official guest 
would be considered incidental. 

Commissioner Jefferson requested that staff make quarterly presentations to the 
Commission to report on who uses the facilities and the purpose of their visit. 

Commissioner Makras moved to adopt the revised policy incorporating Commissioner 
Jefferson's request for quarterly reports. Commissioner Makras pointed out that he had 
not amended the resolution to include the Mayor's request to retroactively charge those 
individuals who had used the facility prior to the adoption of this revised policy. 

Resolution No. 92-0361 : Authorizing the Manager of the Utilities Engineering Bureau to 
negotiate Amendment No. 8 to the professional services agreement with Bechtel 
Corporation on a sole source basis for construction phase services, including construction 
management, for the Muni Metro Turnaround Project. 

Resolution No. 92-0362 : Approving payment of insurance premiums for the Owner 
Controlled Insurance Program (OCLP) for the Muni Metro Turnback Project; and 
directing staff to seek Commission's approval for insurance and claims administration in 
conjunction with Amendment No. 1 for the Sedgwick/Carrie/Leong brokerage agreement 
to administer the Owner Controlled Insurance Program, during the construction phase of 
the project. 

Commissioner Jefferson moved and Commissioner Hardeman seconded to adopt the 
Resolution Nos. 92-0361 and 92-0362. On the question, Commissioner Makras voted no. 

Commissioner Makras stated that he accepted the package as a whole but disagrees with 
staff's recommendation on the sole source issue. He expressed concern about awarding 
the construction management contract to the same firm, Bechtel Corporation, who is 
already managing the design engineering phase of the project. He stated there would be a 
"check and balance" system if the management of the construction and the design and 
engineering functions were separated. 

Commissioner Hardeman expressed his opinion that Bechtel is the only company that 
could handle the requirements of the job. 



92-233 



Flint Nelson, responded to the Commissioners' questions, that if the construction 
management contract is not awarded at this point, staff would have to issue a Request for 
Proposal and start another selection process. This process would take four to six months 
and would cost $50,000 to $75,000, plus the additional escalation cost to the total contract 
price at a later period. 

The Commission voted 4-1 to adopt the resolution. Commissioner Makras voted no. 






Public Comments: 

David Pilpel commented about the need to address this year and next year's budget deficit 
problems earlier and consider recommendations that would permanently fix PUC's 
budget problems. He suggested that the Commission look at the proof of payment 
program. 



THEREUPON, THE MEETING WAS ADJOURNED AT 5:30 P.M. 



Romaine A. Boldridge 
Secretary 



92-234 



MAIN PUBLIC LIBRARY 
Government Documents 
Civic Center - 1st Floor 



'«tf 



MINUTES 

PUBLIC UTILITIES COMMISSION 
CITY AND COUNTY OF SAN FRANCISCO 

Frank M. Jordan 
Mayor 

REGULAR MEETING 
Room 282, City Hall 

2:00 RM. 
December 22, 1992 



DOCl IMFNTS DEPT. 
JAN 2 1993 

SAN FRANCISCO 
PUBLIC LIBRARY 



COMMISSIONERS 

Gordon Chin, President 

Victor G. Makras, Vice President 

James D. Jefferson 

Patricia A. Carson 

Michael E. Hardeman 



DEPARTMENTS 
Hetch Hetchy Projects 
Municipal Railway 
Water Department 



BUREAUS 

Energy Conservation 

Engineering and Construction 
Management 

Financial Management 

Information Systems 

Management Efficiency and 
Productivity 

Personnel and Training 



Thomas J. Elzey 
GENERAL MANAGER 

Romaine A. Boldridge 
SECRETARY 



92-235 



Call to Order: 2:10 p.m. 



Present: President Gordon Chin, Vice President Victor G. Makras, Commissioner 

James D. Jefferson, Commissioner Patricia A. Carson, Commissioner 
Michael E. Hardeman 



On motion of Commissioner Hardeman, seconded by Commissioner Jefferson, the 
Minutes of the Recessed Meeting on the Muni Metro Embarcadero Turnback Project on 
December 8, 1992 and the Minutes of the Regular Meeting of December 8, 1992 were 
approved. 

A tape of the meeting is on file in the office of the Secretary of the Public Utilities 
Commission. 






RESOLUTION 
NO. 



92-0364 



UEB 



On motion of Commissioner Makras, seconded by Commissioner 
Carson, the following resolution was adopted: 

Accepting the work performed under San Francisco Water 
Department Contract No. WD-2099, 8-inch Ductile Iron Main 
Installation in Spruce Street, Euclid Avenue and other streets in the 
Laurel Heights area, as satisfactorily completed; approving debit, 
Contract Modification No. 1 in the amount of $7,851.00; and 
authorizing final payment to the contractor, Uniacke Construction, 
Inc. in the amount of $6,235.00. 



VOTES: 



AYES - Chin, Makras, Jefferson, Carson, Hardeman 



On motion of Commissioner Makras, seconded by Commissioner 
Carson, the following resolution was adopted: 

92-0365 UEB Awarding the San Francisco Water Department Contract No. 

WD-2129R, 12-Inch Iron Main Installation in Johnstone Drive, 
Medical Center Road and Clarendon Avenue to Uniacke 
Construction, Inc. in the amount of $1 19,407.00. 



VOTES: 



AYES - Chin, Makras, Jefferson, Carson, Hardeman 



On motion of Commissioner Carson, seconded by Commissioner 
Makras, the following resolution was adopted: 

92-0366 GM Disapproving the waiver of attorney-client privilege and release of 

certain requested documents. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 



92-236 



On motion of Commissioner Makras, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0367 MR Designating January 26, 1993 at 2:00 p.m. in Room 282, City Hall, 

San Francisco, as the date, time and place to hold a public hearing to 
consider amendments to the Municipal Railway Fare Schedule and 
reductions in Municipal Railway service. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0368 UEB Authorizing the Utilities Engineering Bureau to request proposals, 

interview, select and recommend to the Public Utilities Commission 
two qualified firms for two separate contracts to provide technical 
engineering and testing laboratory services for two years; one 
contract for use on Federally funded projects up to a maximum 
amount of $200,000.00 and the other contract for use on City 
funded projects up to a maximum amount of $200,000.00. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0369 UEB Authorizing the Manager of the Utilities Engineering Bureau to 

execute Amendment No. 2 to the Professional Services Agreement 
with Foster-Jordan Associates, for additional design costs for the 
Muni Metro Extension Project in the amount of $136,247.08, 
thereby increasing the total fee from $1,700,000.00 to 
$1,836,247.08. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0370 UEB Awarding San Francisco Water Department Contract No. WD-2 108, 

8-inch Ductile Iron Main Installation in Post Street, Scott to Baker 
Streets, Presidio Avenue, Post Street to California Street in the net 
amount of $310,000.00 to P&J Utility Co. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0371 UEB Requesting the Board of Supervisors' approval to extend the time to 

award San Francisco Water Department Contract No. WD-2 130, 
Ventilation of Adit Structures; and awarding the contract to Eslinger 
and Son Construction Co., Inc., in the amount of $97,133.00, subject 
to the Board of Supervisors' approval of extension of time to award. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 



92-237 



On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0372 UEB Requesting the Board of Supervisors' approval to extend the time to 

award San Francisco Water Department Contract No. WD-2131, 
Install Permanent Work Platforms/Water Supply Division; and 
awarding the contract to Echo- West, Inc., in the amount of 
$1 17,000.00, subject to the Board of Supervisors' approval of 
extension of time to award. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 

On motion of Commissioner Jefferson, seconded by Commissioner 
Hardeman, the following resolution was adopted: 

92-0373 UEB Authorizing the Manager of the Utilities Engineering Bureau to 

negotiate a professional services agreement with Archeological 
Services, Inc. for an amount not to exceed $30,000.00 for the 
required Cultural Resources Investigation for the Early Intake Septic 
System Rehabilitation in Tuolumne County, California. 

VOTES: AYES - Chin, Makras, Jefferson, Carson, Hardeman 






Introduction of Old Business by Commissioners: 

Hearing on Municipal Railway May 1992 Review 

Thomas J. Elzey, General Manager, Public Utilities Commission, explained the operations 
of the ongoing observation program which is comprised of students hired by the Bureau 
of Protective Services and Burns Security personnel. The program is under the 
jurisdiction of the Bureau of Protective Services. All anomalies found during an 
observation are reported to Municipal Railway management. 

Kirk Lawson, Manager, Bureau of Management Efficiency and Productivity, discussed 
the observation conducted in May 1992 at the seven maintenance facilities of the 
Municipal Railway. Mr. Lawson stated that the goals and objectives of the observation 
was to monitor specific work activities, such as: gate operations, yard perimeter security, 
graffiti removal and observance of work rules. Mr. Lawson stated that the findings were 
not verified because there was no detailed information to warrant verification. Mr. 
Lawson said that the Chief of Protective Services, Chuck Richardson, was in charge of 
the observation and that the timeframe in which to complete the observation was two to 
three weeks. 

Commissioner Makras asked whether the findings were shared with either the General 
Manager of the Public Utilities Commission or the General Manager of the Municipal 
Railway. Kirk Lawson said he did not report to either one because the information he had 
was not sufficient. 

Chuck Richardson, former Chief of Protective Services and currently Chief of Police, 
Seaside, California, presented to the Commission documents supporting the observations 
that took place in May. Mr. Richardson introduced the individuals who participated in the 
observation, namely: Andy Balmy, Walt Gibbons, Fred West, Vivian Viviani, and Jim 
Scott. 



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Mr. Richardson explained that the observation program of the Bureau of Protective 
Services is undertaken by hiring students to follow up on reports of employees involved 
in criminal acts on Muni buses and cable cars. The students' findings are documented by 
Bums Security personnel and forwarded to either the superintendent or the supervisor 
who had requested the observation. Mr. Richardson stated that Kirk Lawson was in 
charge of the May 1992 observation. Mr. Richardson said that he did not prepare a report 
on the findings since he was advised by Kirk Lawson that he would prepare the report 
himself. 

After discussion, the Commission agreed to take no particular action on this issue because 
the testimonies were conflicting and the evidence presented was not correlated. 






General Manager's Report: 

Clean On-Time Program 

Johnny Stein, General Manager, Municipal Railway, suggested to continue the Clean 
On-Time Program because it is a valuable tool for the Municipal Railway in enhancing 
ridership. 

On the On-Time Rebate Program, Commissioner Makras suggested that the rebate cards 
include "return postage guarantee" so that people requesting the rebate would not have to 
pay for the return postage. 

1992-93 Budget 

Thomas J. Elzey, reported that the Civil Service Commission passed legislation 
authorizing involuntary work furloughs for City employees. The Mayor's Office has 
delayed the implementation of the program until February 1, 1993. Michelle Witt 
reported that the legislation exempted firefighters, police, airport police and nine labor 
unions. Local 250A, Local 200 and Local 21 were exempted pending the results of a fact 
finding survey. Ms. Witt pointed out that almost all of PUC and Muni employees belong 
to these unions. 



1993-94 Budget 

Michelle Witt stated that she would submit budget recommendations at the budget hearing 
which would address voluntary work furloughs. Muni fare increases, program 
eliminations or program reductions, and service reductions. On the voluntary work 
furlough, Ms. Witt said that if all PUC employees were furloughed for ten days, the City 
could realize savings of $6.7 million. 

Commissioner Carson stated that she is opposed to any sale of capital assets to balance 
the budget. 

Johnny Stein advised the Commission that the Municipal Railway is in the process of 
reprioritizing capital improvement projects. Some funding agencies require that we 
demonstrate that we have the ability to fund the projects. Mr. Stein said the Commission 
may want to consider escalating Muni fares over the next four or five years. Staff would 
find out whether this is feasible and research on what other districts do. 

Michelle Witt reported that the next report of the PUC Reorganization Task Force will be 
on January 12th. The next step for the task force is to determine those positions that 
could be eliminated as a result of the decentralization of bureau functions. Ms. Witt also 
reported that the Mayor's Reorganization Task Force is looking at City- wide 
reorganization but have not considered details yet. 



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Resolution No. 92-0366 : Disapproving waiver of attorney-client privilege and release of 
certain requested documents. 

The Commission went into executive session in accordance with Government Code 
Section 54956.9(b) and Charter Section 3.500(0(2) regarding Waiver of Attorney-Client 
Privilege. The Commission approved unanimously not to waive attorney-client privilege 
and not to release the documents requested. 






THEREUPON, THE MEETING WAS ADJOURNED: 5:00 P.M. 



Romaine A. Boldridge 
Secretary 



0448M 



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